Archive · 15 Aug 2025
US Producer Price Growth Hits Highest Monthly Pace Since 2022
The cost of goods and services for businesses in the US went up in July, according to the Producer Price Index (PPI).
The PPI rose by 0.9%, the largest jump in a while.
Services like trade services increased, and goods prices rose, partly due to tariffs on imported goods.
The rise in costs made investors worry.
The Federal Reserve is also considering whether to cut interest rates.
The Producer Price Index (PPI) rose 0.9% in July, the largest monthly increase since 2022.
Services costs saw their biggest jump since March 2022, increasing 1.1%.
Goods prices rose 0.7%, with some increases linked to tariffs.
The data suggests rising costs for businesses due to tariffs.
The strong PPI reading caused US equity indices to decline.
- Who
- The Department of Labour.
- What
- The Producer Price Index (PPI) increased.
- When
- July.
- Where
- United States.
- Why
- Rising PPI complicates the Federal Reserve's interest rate decisions.
Fed Officials
Economists
Impact of tariffs
Fed Officials
Some believe the effect of tariffs will be short-lived.
Economists
Others warn that higher input costs could feed more persistently into consumer prices.
- PPI (MoM)
- 0.9%
- PPI (YoY)
- 3.3%
- Services Increase
- 1.1%
- Goods Increase
- 0.7%
- Services Increase (Since)
- March 2022
- Tariff Impact
- Increasing
Sources
US producer inflation exceeds 3-year high, price index rises 0.9% MoM
S&P 500, Nasdaq slip from record highs as core producer prices hit a 3-year high in July
US Producer Inflation Highest In 3 Years in July
