Inflation warning: Wholesale prices surge in July

• The index is considered an early hint of what might be coming for consumers if businesses pass along higher costs to shoppers.

By the numbers: The Producer Price Index rose 0.9% in July, the biggest monthly surge since June 2022.

• In the 12 months through July, the index rose 3.3%, the largest annual increase since February.

The intrigue: The BLS said hotter prices in the services sector accounted for much of the increase in July, as profit margins for equipment and machinery wholesalers surged.

• Services costs increased 1.1%, the most since March 2022, with more than half of that increase related to margins rising.
• Goods prices rose a comparatively mild 0.7%, the largest monthly gain since January.

The bottom line: The report signals that companies are not absorbing tariff-related costs — a sign that steeper price hikes might be coming down the pike for American shoppers.