Another tariff warning panel while wholesale inflation increases unexpectedly in July

The Labor Department reported on Thursday that its production price index – which measures inflation before hitting consumers – increased by 0.9% last month compared to June and 3.3% compared to the previous year.

The figures were much higher than the economists expected.

The wholesale inflation report of large two days after the Labor Department said that consumer prices increased by 2.7% last month from July 2024, as the previous month and more than one post-pandemic hollow of 2.3% in April. Basic consumer prices increased by 3.1%, compared to 2.9% in June. The two figures are greater than the target of 2% of the federal reserve.

The new figures suggest that the slowdown in rent increases and cheaper gas compensate at least in part the impacts of Trump prices. Many companies also absorb a large part of the cost of tasks instead of transmitting them to customers via higher prices.

Bost prices can offer an early overview of consumer inflation management. Economists also look at it because some of its components, including health care measures and financial services, take place in the favorite inflation gauge of the Federal Reserve – Personal Consumer Expenditure, or PCE, the index.