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 PP

See Full Page