AP

US wholesale inflation rose more slowly in July

Aug 11, 2022, 6:48 AM
Money is exchanged at a food stand while workers wear face masks inside Grand Central Market on Wed...
Money is exchanged at a food stand while workers wear face masks inside Grand Central Market on Wednesday, July 13, 2022, in Los Angeles. Falling gas prices gave Americans a slight break from the pain of high inflation last month, though the surge in overall prices slowed only modestly from the four-decade high it reached in June. And even as gas prices fall, inflation in services such as health care, rents and restaurant meals is accelerating. (AP Photo/Marcio Jose Sanchez)
(AP Photo/Marcio Jose Sanchez)

WASHINGTON (AP) — Inflation at the wholesale level jumped 9.8% in July from a year earlier, a slowdown from the June pace yet still a painfully high level suggesting that rampant inflation will persist for months to come.

Thursday’s report from the Labor Department also showed that on a month-to-month basis, the producer price index — which measures inflation before it reaches consumers — dropped 0.5% from June to July. That is the first decline since April 2020 and was down from a sharp 1% increase from May to June.

Falling gas and energy prices pushed down the monthly figure. Those declines suggest that retail gas prices, which have fallen steadily since mid-June, are likely to keep dropping.

The monthly decline in wholesale prices follows a government report Wednesday that showed consumer inflation was unchanged from June to July — the first flat figure after 25 straight months of increases.

Measured year over year, consumer inflation rose 8.5% in July, down from June’s 9.1% annual rise, which was a four-decade high. Prices in such previously white-hot categories as gas, airline tickets and hotel rooms helped slow inflation last month.

The milder inflation data, and last month’s unexpectedly robust hiring that helped lower the unemployment rate to a half-century low of 3.5%, have provided President Joe Biden with some positive economic news after months of accelerating price spikes hammered his approval ratings.

Congressional Republicans have made rising inflation a major line of attack in the upcoming midterm elections.

The Federal Reserve has embarked on its fastest pace of interest rate hikes since the early 1980s in an effort to quell inflation, and will likely keep raising borrowing costs for the rest of this year. Its short-term rate is currently in a range of 2.25% to 2.5%, the highest since 2018.

Chair Jerome Powell has said the Fed would need to see a series of declining inflation readings before it would consider pausing its rate increases.

The Fed could announce a third straight three-quarter point rate hike when it next meets in late September or instead carry out a less drastic half-point hike.

Thursday’s producer price data captures inflation at an earlier stage of production and can sometimes signal where consumer prices are headed. It also feeds into the Fed’s preferred measure of inflation, which is called the personal consumption expenditures price index.

Today’s Top Stories

AP

An uprooted tree, toppled by strong winds from the outer bands of Hurricane Ian, rests in a parking...
CURT ANDERSON Associated Press

Ian makes landfall in southwest Florida as Category 4 storm

About 2.5 million people had been ordered to evacuate the area before the storm hit the coast on Wednesday with maximum sustained winds of 150 mph (241 kph).
21 hours ago
The White House to ask for less money to fund border wall...
ACACIA CORONADO and GISELA SALOMON Associated Press

Increase in Venezuelan migration is felt across US

Last month, Venezuelans surpassed Guatemalans and Hondurans to become the second-largest nationality stopped at the U.S. border after Mexicans.
3 days ago
In Iran, protests have led to violent clashes between citizens and security forces. Protesters pict...
The Associated Press

At least 9 killed as Iran protests over woman’s death spread

The scope of Iran's ongoing unrest, the worst in several years, still remains unclear as protesters in more than a dozen cities.
6 days ago
U.S. Capitol pictured. The House just voted on an election law...
MARY CLARE JALONICK Associated Press

House passes election law overhaul in response to Jan. 6

The bill, which is similar to bipartisan legislation moving through the Senate, would overhaul an arcane 1800s-era statute known as the Electoral Count Act
7 days ago
Trump pictured. A lawsuit against Trump was just filed in new york...
Associated Press

NY attorney general sues Donald Trump and his company

Attorney General Letitia James' lawsuit is the culmination of the Democrat's three-year civil investigation of Trump and the Trump Organization.
8 days ago
el helicoide caracas...
RODRIQUE NGOWI, GISELA SALOMON and CLAUDIA TORRENS Associated Press

Surprise is key part of migrant travel from Florida, Texas

EDGARTOWN, Mass. (AP) — The chief executive of Martha’s Vineyard Community Services was wrapping up work when she looked outside to see 48 strangers at her office with luggage, backpacks and red folders that included brochures for her organization. The Venezuelan migrants who were flown to the wealthy Massachusetts island from San Antonio on Wednesday […]
10 days ago

Sponsored Articles

Young woman receiving laser treatment...
Form Spa

How facial plastic surgery and skincare are joining forces

Facial plastic surgery is not only about looking good but about feeling good too. The medical team at Form Spa are trained to help you reach your aesthetic outcomes through surgery and through skincare and dermatology, too.
large group of friends tohether in a park having fun...
BYU MBA at the Marriott School of Business

What differentiates BYU’s MBA program from other MBA programs

Commitment to service is at the heart of BYU’s MBA program, which makes it stand out among other MBA programs across the country.
a worker with a drill in an orange helmet installs a door in the house...
Price's Guaranteed Doors

Home improvement tip: Increase the value of your home by weatherproofing doors

Make sure your home is comfortable before the winter! Seasonal maintenance keeps your home up to date. Read our tips on weatherproofing doors.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
A paper reading IRS, internal revenue service is pictured...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
US wholesale inflation rose more slowly in July