US producer price inflation bounced in July to its highest reading since 2022, data showed Thursday, as policymakers seek to gauge effects from President Donald Trump’s tariffs.
The advance, which was markedly larger than analysts expected, came as a rise in services costs exceeded that in goods.
Price pressures have been building up for businesses as they grapple with sweeping tariffs after Trump targeted most trading partners with a 10-percent levy this year, alongside steeper levels on sectors like steel and aluminum.
The producer price index (PPI) rose 0.9 percent on a month-on-month basis, hotter than analysts expected, after a flat reading in June, said the Department of Labor.
This was significantly above an analyst consensus forecast by Briefing.com, which expected a jump of 0.2 percent.
The latest numbers took the overall PPI figure to 3.3 percent, said the Bureau of Labor Statistics.
The cost uptick in goods was 0.7 percent while that of services was 1.1 percent — marking the biggest such jump since March 2022 as well.
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