US Edition
Wholesale prices rose 0.9% in July, much more than expected
Wholesale inflation rose 3.3% year-over-year with services up 1.1%, the largest monthly increase since March 2022, driven by higher tariffs on imports, the U.S. Labor Department reported.
- The U.S. Labor Department reported the Producer Price Index jumped 0.9% last month, the largest since June 2022, raising the annual rate to 3.3%.
- Amid rising import levies, U.S. wholesale inflation rose by the most in three years as President Donald Trump's tariff hikes fed through supply chains.
- With services accounting for most gains, final demand services surged 1.1%, the largest since March 2022, while final demand goods climbed 0.7%.
- S&P 500 futures fell 0.5% and Nasdaq 100 futures were 0.58% lower after the data release, as traders pared bets on a Fed rate cut at the September meeting.
- Expectations for a rate cut next month are high, as money markets fully price a 25-basis-point reduction, according to CME FedWatch tool.
139 Articles
139 Articles
The rise in wholesale prices in the United States last month seems to have almost completely erased the possibility that the Federal Reserve would cut interest rates by half a percentage point in September, although expectations of a quarter percentage point rise next month, followed by another in October, remain intact. US producer prices rose 0.9% in July, amid an increase in the cost of goods, but also of services such as the wholesale sale o…
Producer Prices Up, Signaling Rising Inflation, More BLS Statistician Firings
‘Her Numbers are RIGGED to make me look bad! OFF WITH HER HEAD! Thank you for your attention to this matter!’The Bureau of Labor Statistics released its monthly Producer Price Index (PPI) today, showing that the wholesale prices domestic producers get for goods and services were up sharply, by .9 percent. That’s a hell of a lot higher than the Dow Jones forecast of .2 percent, and the biggest monthly increase since June 2022. Hey, that was when …
Soaring wholesale prices mean higher inflation is coming. Are tariffs to blame?
The producer price index, a key indicator of rising inflation across the economy, hit its highest level since 2022 in July. That suggests U.S. companies aren't eating the cost of Trump's tariffs.
In the midst of the international tariff conflict, US producers surprisingly significantly increased their prices in July. According to the Department of Labour in Washington, there was an increase of 0.9 percent in June. Dietmar Deffner talks about this with Moritz Kraemer, LBBW's chief economist.
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