Topline
Wholesale prices increased by an unexpected 0.9% in July, the Bureau of Labor Statistics reported on Thursday, causing markets to shudder after reaching record highs on a much more optimistic inflation report from the consumer price index on Tuesday.
Prices for wholesale goods and services increased in July, the Bureau of Labor Statistics said.
Los Angeles Times via Getty Images
Key Facts
The producer price index indicated wholesale prices rose 0.9% in July for an increase in 3.3% for the year, after remaining flat in June.
The jump in final demand caught economists polled by Reuters by surprise, who expected it to rise a more modest 0.2%.
Price increases for services drove the rise, the BLS said, with final demand rising 1.1%—its largest increase since March 2022.
Prices for goods also increased, which the BLS attributed in large part to prices for food rising 1.4%.
Both the S&P 500 and Nasdaq slipped after the news broke on Thursday morning, but largely recovered and remained flat by 10:40 a.m.
This is a breaking story and will be updated.