U.S. producer prices jumped much higher than expected in July, suggesting inflation could remain higher than anticipated by the Biden administration and Federal Reserve officials.
The Bureau of Labor Statistics’ Producer Price Index rose one percent compared with June, matching the June rise and outpacing the 0.6 expected. Compared with a year ago, the index is up 7.8 percent, the biggest annual increase in decades.
Excluding food and energy, PPI rose by one percent on a monthly basis and 6.2 percent on an annual basis. Excluding food, energy, and trade services, pries rose nine-tenths of a percentage point and 6.1 percent compared with a year ago.
In other words, instead of cooling off, inflation continued to sizzle in July.
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