Here's what liberal biased Fox Business said...
Wholesale inflation increased much more than expected in July, raising concerns about a resurgence of inflationary pressures in the economy.
The Bureau of Labor Statistics on Thursday released the producer price index (PPI) for the month of July, which showed an increase of 0.9% from the prior month and 3.3% from a year ago.
Those PPI figures were much hotter than the forecast of prices rising 0.2% on a monthly basis and 2.5% from last year that was estimated by economists polled by LSEG.
Core PPI, which excludes volatile components like food and energy, also rose 0.9% from last month and was up 3.7% from a year ago – well above the LSEG estimates of 0.2% and 2.9%, respectively. The 0.9% monthly increase in core PPI was the largest increase since March 2022.
The rise in headline PPI to 3.3% comes after it was initially reported as 2.3% in June and revised up slightly to 2.4% with this report. The jump in core PPI to 3.7% comes after it was just 2.6% in June. Both headline and core PPI showed no monthly price growth in June prior to the rise in July.
Services prices moved up 1.1% in July, which was the largest rise since an increase of 1.3% in March 2022. Over half of the broad-based increase in prices for July was attributable to margins for trade services, which jumped 2% and measure changes in margins received by wholesalers and retailers.
Margins for machinery and equipment wholesaling jumped 3.8% in July, accounting for about 30% of the monthly rise – while financial services, travel accommodation services, auto retailing and truck transportation of freight also rose.
Goods prices posted their biggest gain since January, rising 0.7%, with strong increases in the prices of vegetables, meat and eggs.
Fox Business
Producer prices surged more than expected in July, spurri...
The Bureau of Labor Statistics reported the producer price index jumped more than expected in July, spurring renewed concerns about inflation's economic impact.
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