PPI came in hotter than expected! Foreign producers refuse to cut prices despite tariffs

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PPI reflects sharpest rise in three years for U.S. wholesale prices

The cost of wholesale goods and services — where rising inflation tends to show up first — posted the biggest increase in July in three years, possibly heralding a sizable acceleration in price hikes tied to higher U.S. tariffs.

The producer price index jumped 0.9% last month after no change in June, the government said Thursday.

The rate of wholesale inflation climb ed to 3.3% from 2.3%, a five-month high.

Another gauge known as the core rate that is seen as a more stable measure of wholesale inflation rose 0.6% in July.

The 12-month increase in the core rate moved up to 2.8% from 2.5%.

The wholesale report doesn’t capture the cost of imports as well as the consumer price index, but the CPI also showed a sharper increase in July.





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