Prices for wholesale goods and services ticked up sharply in July, the latest warning that inflation could be coming for American consumers following President Donald Trump’s tariffs.
The producer price index, measured by the Bureau of Labor Statistics, rose 0.9% in July — the biggest monthly increase since June 2022 and higher than the 0.2% anticipated by experts.
The PPI tracks how selling prices change over time and can be a first indicator of rising inflation. July’s PPI figures came in as somewhat of an unpleasant surprise after a modest consumer price index increase earlier this week — which, at a 2.7% annual increase, was less than Wall Street had been expecting and made investors more optimistic for an interest rate cut from the Federal Reserve.