US Wholesale Inflation Holds at 4.7% as PPI Unchanged

The government checks the prices that businesses pay for the things they buy to make and sell stuff.

This is called wholesale inflation.

In July, these prices did not go up at all, which is different from the months before.

When wholesale prices stay the same, it often means the things we buy in stores may not get much more expensive.

The prices of some things, like energy and gasoline, actually went down.

But the prices of services, like things people use to manage their money, went up a little.

Over the last year, wholesale prices went up by 4.7 percent.

That is still a lot, but the news made many people think inflation is slowing down.

The leaders who decide interest rates watch these numbers closely.

If inflation slows enough, they might not need to make borrowing money more expensive.

So this report made some people feel hopeful that price increases may be easing.