US wholesale inflation rose last month at the fastest pace in three years
Workers are seen on the production line at GE Appliances on August 13 in Louisville
By Alicia Wallace, CNN
(CNN) — US inflation on the wholesale level picked up steam in July, 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.
Thursday’s readings far exceeded economists’ expectations for prices would rise by just 0.2% in July and 2.4% annually.
“Tariff churn is starting to burn and producers are starting to feel the inflation fire heat,” Chris Rupkey, chief economist at FwdBonds, wrote in commentary on 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.”
PPI serves as a potential bellwether for the prices consumers may see at businesses in the months ahead.
He added: “Today’s PPI report is the final confirmation that inflation is heading our way. The inflation simmering on the back burner has been brought forward and is clearly starting to boil.”
This story is developing and will be updated.
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