In July 2025, U.S. wholesale prices rose sharply by 0.9%, well above expectations and marking the largest monthly increase since June 2022, according to the Bureau of Labor Statistics.
The Producer Price Index (PPI), which tracks prices received by producers, climbed 3.3% over the year, surpassing the Federal Reserve’s 2% inflation goal.
Excluding volatile food, energy, and trade services, core PPI increased by 0.6%, its biggest jump since March 2022. The goods sector saw a 0.7% rise, with fresh and dry vegetable prices notably up nearly 39%, despite a 1.8% drop in gasoline costs.
Services also contributed significantly, with final demand services prices rising 1.1%. Trade services margins went up 2%, influenced by adjustments linked to President Donald Trump’s tariff policies.
Machinery and equipment wholesaling margins grew 3.8%, accounting for about 30% of the services price rise. Portfolio management fees and airline passenger fares also increased.
Following the report, stock futures fell and short-term Treasury yields rose, as markets reduced expectations of Federal Reserve rate cuts this year. The data suggests businesses may soon pass increased costs onto consumers, countering prior expectations of cost absorption.
Concerns over the accuracy of BLS data persist, with recent budget cuts leading to the removal of around 350 input cost categories from inflation measurements.