Wholesale inflation pricing rose above expectations in July, the Labor Department reported last week. The report counters recent inflation data showing price increases easing.
The Bureau of Labor Statistics (BLS) said the producer price index (PPI), a measure of the prices that companies get for finished goods in the marketplace, rose 0.3% in July. The increase was the largest monthly gain since January and is up from a 0% increase in June.
Excluding food and energy, core PPI also increased 0.3%, the biggest monthly increase since November 2022. Economists surveyed by Dow Jones had been expecting an increase of 0.2% for both readings.
On a year-over-year basis, PPI was up 0.8%. Prices excluding food, energy and trade services moved up by 2.7% on an annual basis.
Stage 4 goods inputs, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, fell 0.3% in July after a flat June. Overall, Stage 4 intermediate demand rose 2% year-over-year, up from a 1.4% increase in June.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, fell 1.8% in July after a revised 0.1% decline in June. Overall, year-over-year Stage 3 demand fell 6.9% after a 7.5% decline in June.
Goods inputs for Stage 2 intermediate demand, measuring suppliers to Stage 3 suppliers, rose 3.3%, the first increase since April, driven by higher fuel costs. Overall, Stage 2 intermediate demand dropped declined 8.5% year-over-year after a 13.4% decline in June.
Finally, goods inputs for Stage 1 demand fell 0.9% in July, the ninth month of declines in the past 10. Overall, demand declined 3.1% year-over-year after a 4.7% drop in June.
