Producer Price Index soars 0.9% in July
San José, CA – The Producer Price Index, or PPI, soared 0.9% in the month of July, far more than what economist expected. This was biggest monthly increase since June of 2022, when supply chains snarled by the impact of the COVID-19 pandemic pushed the consumer price inflation rate to 9%. The PPI measures prices for domestic products sold to other businesses.
This surge in the PPI portends higher consumer prices in the future. Since the PPI does not directly include import prices, consumers are now going to be hit with a double whammy. First by rising prices from domestically made goods and services, as prices of products made in the United States are rising faster, according to the PPI. And second, by import prices, which will increase by September, when the latest August tariff increases will start to show up.