The producer price index, which is a gauge of prices that producers get for their goods and services in the open market, edged up by 0.9% in July after remaining flat in June.
A measure of wholesale prices rose in July, coming in higher than Wall Street estimates, after remaining unchanged in June.
The producer price index, which is a gauge of prices that producers get for their goods and services in the open market, edged up by 0.9% in July after remaining flat in June.
On an annual basis, PPI stood at 3.3% in July, compared to 2.3% in June. This was the largest 12-month increase since rising 3.4% in February 2025, according to the Bureau of Labor Statistics (BLS).
Wholesale inflation in July was higher than Wall Street expectations. The wholesale inflation report comes days after the consumer price index (CPI) report, which showed that inflation edged up to 2.7% annually in July, softer than what analysts expected.
Core PPI, which excludes food, energy, and trade services, moved up by 0.6% in July, marking the largest increase since the 0.9% rise in March 2022, the BLS report stated. On an annual basis, core PPI rose to 2.8%.
Goods inflation stood at 0.7% during July, lower than the 1.1% surge observed in the index for services.
Within goods, the BLS noted that prices of fresh and dry vegetables surged nearly 39%, contributing to a quarter of the increase in the goods index. Indexes of meats, diesel fuel, and jet fuel also rose during the month, while gasoline prices declined.
As for the rise in services, the agency observed that 30% of the increase in the index in July could be attributed to margins for machinery and equipment wholesaling, while indexes for portfolio management and securities brokerage also rose. Prices for hospital outpatient care declined during the month.
Prices for portfolio management services rose 2.2% during the month.
Meanwhile, U.S. equities declined in Thursday’s pre-market trading session as investors digested inflation data.
The SPDR S&P 500 ETF (SPY) was down 0.39% at the time of writing, while the Invesco QQQ Trust (QQQ) fell 0.45%. Retail sentiment around the S&P 500 ETF on Stocktwits has been in the ‘neutral’ territory.
The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.01% during Thursday’s pre-market trading session.
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