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US wholesale inflation slowed more than expected in July
CNN • • general
Key Points:
- The Producer Price Index (PPI) increased 4.7% over the 12 months ending in July, slowing from 5.5% in June, indicating a potential slowdown in consumer price hikes ahead.
- Monthly producer prices were unchanged in July after a 0.1% decline in June, both better than economists' expectations, suggesting cooling wholesale inflation.
- Core PPI, which excludes volatile food and energy prices, rose 0.2% in July and slowed to 4.2%, the lowest rate in four months, reflecting easing underlying inflation pressures.
- Despite cooling inflation, prices remain elevated compared to historical norms, continuing to strain household finances and affordability.
- Localized inflation pressures persist in sectors like semiconductors, where prices rose 27.1% annually due to increased demand from AI-related investments diverting production away from consumer products.
