WASHINGTON (Reuters) -U.S. producer prices increased more than expected in July amid a surge in the costs of services and goods, suggesting a broader pickup in inflation in the months ahead.

The producer price index for final demand jumped 0.9% last month after being unchanged in June, the Labor Department’s Bureau of Labor Statistics said on Thursday. Economists polled by Reuters had forecast the PPI rising 0.2%.

Services prices soared 1.1%, the largest gain since March 2022, amid strong increases in machinery and equipment wholesaling, costs of portfolio management, hotels and motels, and road transportation of freight. Good prices vaulted 0.7%, the biggest gain since in January. There were strong increases in the prices of vegetables, meat and eggs.

With the July report, the BLS ende

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