Stocks Shudder As PPI Shows Higher Than Expected Wholesale Inflation
Prices for wholesale goods and services increased in July, the Bureau of Labor Statistics said. Los Angeles Times via Getty Images
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.
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