- Reaction score
- 2,276
Costs were sharply on the rise for producers and manufacturers in July, a sign that higher prices could soon filter down to American consumers.
US inflation on the wholesale level picked up steam last month, with prices rising by the fastest monthly pace since June 2022, new data showed Thursday.
The latest Producer Price Index, which measures the average change in prices paid to producers, jumped 0.9% from June, lifting the annual rate to 3.3%, according to Bureau of Labor Statistics data.
The PPI serves as a potential bellwether for the prices consumers may see in the months ahead.
“Producers are starting to feel the inflation fire heat,” Chris Rupkey, chief economist at FwdBonds, wrote Thursday. “It will only be a matter of time before producers pass their higher tariff-related costs on to the backs of inflation-weary consumers.”
Thursday’s readings far exceeded economists’ expectations for prices would rise by just 0.2% in July and 2.4% annually.
And considering the PPI covers the domestic output of goods and services and excludes imports, the potential consumer price inflationary impact could be underestimated, noted Brian Bethune, an economist at Boston College.
US inflation on the wholesale level picked up steam last month, with prices rising by the fastest monthly pace since June 2022, new data showed Thursday.
The latest Producer Price Index, which measures the average change in prices paid to producers, jumped 0.9% from June, lifting the annual rate to 3.3%, according to Bureau of Labor Statistics data.
The PPI serves as a potential bellwether for the prices consumers may see in the months ahead.
“Producers are starting to feel the inflation fire heat,” Chris Rupkey, chief economist at FwdBonds, wrote Thursday. “It will only be a matter of time before producers pass their higher tariff-related costs on to the backs of inflation-weary consumers.”
Thursday’s readings far exceeded economists’ expectations for prices would rise by just 0.2% in July and 2.4% annually.
And considering the PPI covers the domestic output of goods and services and excludes imports, the potential consumer price inflationary impact could be underestimated, noted Brian Bethune, an economist at Boston College.
