Signs of rehearsal inflation show the items from the USAas wholesale prices have increased much more than expected in July, possibly preventing the Fed from lowering interest rates in September, according to a report by the Statistics Office published on Thursday.
The US producer price index, which measures inflation in the prices of final demand goods and services, rose 0.9% on a monthly basis, compared to Dow Jones estimated 0.2%, while on an annual basis, the General Price Index increased by 3.3%, the highest change in 12 months from Fed and the highest change in inflation.
Except for food and energy prices, the basic producer price index (PPI) increased by 0.9% against the estimate of 0.3%. Excluding food, energy and trade, the index increased by 0.6%, the highest rise since March 2022.
Inflation of services has greatly contributed to the increase, up 1.1% in July, the largest increase in March 2022.