Key Metrics
62.38
Heat Index-
Impact LevelMedium
-
Scope LevelNational
-
Last Update2025-08-14
Key Impacts
Positive Impacts (4)
Negative Impacts (5)
Event Overview
The unexpected sharp rise in producer prices highlights persistent inflationary pressures driven by service sector costs. This surge exceeds forecasts, signaling potential challenges for economic policy and raising concerns about sustained inflation trends affecting businesses and consumers.
Collect Records
US wholesale prices rose 0.9% in July, much more than expected
On Thursday, new data from the Bureau of Labor Statistics showed that US wholesale prices, as measured by the Producer Price Index (PPI), increased by 0.9% in July compared to June. This jump lifted the annual PPI rate to 3.3%. This monthly price surge is the fastest since June 2022 and is significantly higher than economists' expectations, which were for a 0.2% monthly increase and a 2.4% annual rise. Excluding food and energy, core PPI also rose by 0.9%, bringing the annual core rate to 3.7%, the highest since March. The data indicated sharply rising costs for producers and manufacturers, which could potentially lead to higher consumer prices in the future. The Dow fell 175 points, or 0.4%, at the opening bell in response to the data, with the S&P 500 and Nasdaq also dropping, though losses were later pared. The PPI report covers domestic output and excludes imports.
Producer prices rise 0.9% in July, marking fastest increase since June 2022
The Producer Price Index (PPI), which measures average changes in prices received by domestic producers, increased by 0.9% in July, data from the Bureau of Labor Statistics showed on Thursday. This is the largest monthly surge since June 2022. The annual PPI rate rose to 3.3%. Core PPI, which excludes food and energy, also increased by 0.9%, lifting the annual rate to 3.7%, the highest since March. The rise in wholesale prices was largely driven by higher costs in the services sector, particularly due to increased profit margins for equipment and machinery wholesalers. The report stated that steeper price hikes may be passed on to American consumers in the coming months. These increases in producer prices exceeded economists’ expectations, who had forecast a 0.2% rise for July and 2.4% annually. The data has raised concerns about inflation in the U.S. economy.