Wholesale Inflation Climbs Higher in July as High Prices Persist

The Labor Department said Friday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, climbed 0.3% in July from the previous month. On an annual basis, prices are up 0.8%. It marked the first increase in wholesale inflation since June 2022.

Excluding the more volatile measurements of food and energy, so-called core inflation rose 0.3% for the month – a reversal from the 0.1% decline in June. The figure was up 2.4% on a 12-month basis.

And the services index climbed 0.5%, the biggest jump since August 2022, the Labor Department said in the report. About 40% of the increase can be traced to a 7.6% rise in prices for portfolio management, according to the report. The cost for machinery and vehicle wholesaling; outpatient care; chemicals and allied products wholesaling; securities brokerage, dealing and investment advice and transportation of passengers also moved higher.