Aug. 11 (UPI) — Wholesale prices, minus volatile items like food and energy, saw the sharpest increase over the 12-month period to July since early 2023, the U.S. government said Friday.
The Producer Price Index, a reflection of prices at the wholesale level, increased at an annual basis by 0.3% to July, following no change year-on-year to June and a 0.3% decline in May.
An index on final demand, minus volatile items such as food, energy and trade, increased by 0.2% in July, the largest increase since February, the Bureau of Labor Statistics reported.
Much of the increase was attributed to an increase in prices for steel-mill products and crude oil, which increased by 7.6% and 8.4%, respectively. Oil prices in particular are on pace for the seventh-straight week of gains, supported by commitments from Saudi Arabia to keep 1 million barrels per day off the market through at least September.
For consumers, inflation increased last month, with the cost of a place to live the largest contributor, the government reported Thursday. The Consumer Price Index was up 3.2% on an annual basis.
Inflation rose to 3% during the prior month, making July the first month for an increase in 13 months.
So-called core inflation, which strips out volatile food and energy prices, showed a 0.2% month-on-month gain to July and 4.7% on an annual basis, down slightly from the prior month.
The Federal Reserve is working to combat inflation through aggressive rate hikes, raising its rate by 25 basis points last month. U.S. Federal Reserve Gov. Michelle Bowman said Monday that progress has been made in the fight against inflation, but rates remain above the 2% target and may warrant additional action.
“Of course, monetary policy is not on a pre-set path, and I will be closely monitoring the incoming data and their implications for the economic outlook,” she said.
U.S. markets were treading water, with the Dow off only around 0.2% early in the Friday trading session.