The report of the Labor Statistics Office on Thursday showed that wholesale prices rose much more than expected in July, providing a possible mark that inflation is still a threat to the American economy, according to the work statistics office on Thursday.
the Product price indexThat measure the prices of the final required goods and services, jumped 0.9 % a month, compared to the discreplination of Dow Jones to achieve a gain of 0.2 %. It has been the largest monthly gain since June 2022.
Except for food and energy prices, Core PPI increased by 0.9 % against expectations by 0.3 %. With the exception of food, energy and trade services, the index increased by 0.6 %, which is the largest gain since March 2022.
On an annual basis, the main PPI increased by 3.3 %, which is the 12 -month -long step since February and more than the inflation goal of 2 % of the Federal Reserve.
Inflation in services provided a lot of payment higher, as it was transmitted by 1.1 % in July for the largest gain since March 2022. Commercial service margins have increased by 2 %, and they are coming amid continuous developments in President Donald Trump’s applications.
In addition, 30 % of the increase in services came from an increase of 3.8 % in machines and wandering in trade. Also, the portfolio management fees increased by 5.8 % and the prices of airline passenger services increased by 1 %.
The future contracts for the stock market fell after the release, while the treasury revenue increased the shorter period.
Although the producers’ price index followed less than the BLS consumer index, it provides important information on pipeline prices. Together, the measures are feeding on the Personal Consumption Expenditure Index of the Ministry of Commerce, which is the basic predicament scale at the Federal Reserve, which will be updated later this month.
With consumer price indicators on expectations earlier this week, the virtual certainty markets were that the Federal Reserve would reduce the main interest rate when it meets in September. After the release, the risk of cutting September decreased, but only, according to the Fedwatch Group for the CME group.
“The great rise in the price of the price of the producers this morning shows that inflation is wandering in the economy, even if consumers do not feel after that,” wrote Chris Zakarili, chief investment employee in North Light Asset. “Looking at the extent of the benign numbers of the consumer price index on Tuesday, this is an unwanted surprise for the ups and the upcoming side and it is possible that you will relax from optimism of” guaranteed “price reduction next month.
Reports come amid an escalation questions about the accuracy of BLS data.
Trump earlier this month launched the former BLS Commissioner and said he intends to nominate the expert of the Heritage Foundation Ej Antoni as the next president of the office. Antoni was a critic of the BLS, and the idea of suspending the non -cultivated monthly salary report was presented until the accuracy of the data is better secure.
BLS stumbled due to the budget discounts and the layoffs of the workers that forced it to change the way in which the data is collected. The product price index in July was the first since the office canceled about 350 category of the comprehensive number of input costs.
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2025-08-14 13:02:00
