On the 13th (local time), the U.S. Department of Labor announced that the Producer Price Index (PPI) for July rose by 0.9% compared to the previous month. This figure significantly exceeds the market expectation of a 0.2% increase and represents the largest rise in over two years.
Compared to the same period last year, it increased by 3.3%, which is also higher than the expected increase of 2.9%. The 3.3% increase is the largest since February 2025 (3.4%).
The core Producer Price Index, excluding energy and food, rose by 0.6% from the previous month, also significantly exceeding projections of 0.3%. Compared to the same period last year, it increased by 2.8%.
The Producer Price Index, also known as wholesale prices, is reflected in final consumer goods prices with a certain delay. For this reason, it is considered a leading indicator of consumer prices. An increase in the Producer Price Index suggests that consumer prices may also rise.