US producer prices climb by most since 2022
Make us a preferred source
Make us a preferred source on Google
The news: US wholesale inflation rose by the most in three years in July, as a surge in margins signalled that companies are not absorbing higher import costs tied to trade tariffs.
The numbers: The US producer price index (PPI) rose 0.9% from the month prior, having held steady in June.
The Bureau of Labor Statistics’ Thursday report saw the measure climb 3.3% from the year prior. Wholesale services costs rose the most since March 2022 to 1.1% while wholesale goods rose 0.7%.
The context: Stock futures slipped on the news, as investors slightly pared back bets on a September rate cut. US treasuries also moved lower, with the yield on two-year notes rose two basis points to 3.69% on Thursday morning New York time.
A day earlier investors were highly confidence that the Federal Reserve would cut rates in September on the back of reassuring consumer price inflation data released on Tuesday.
Investors watch PPI closely as part of the index' data is used to calculate the Fed’s preferred inflation metric.
On Wednesday, US Treasury Secretary Scott Bessent urged the Fed to introduce a cycle of rate cuts to lower interest rates by at least 1.5 percentage points.
The sources: Bureau of Labor Statistics PPI, Bloomberg
