Latest News

Economic Report: Wholesale prices surge again and signal inflation is still bubbling up in the U.S. economy


The numbers: The cost of wholesale goods and services jumped 1.1% in June, signaling inflation has spread deeply in the economy and won’t be easy to eradicate.

Economists polled by The Wall Street Journal had forecast a 0.8% gain.

The increase in wholesale prices over the past 12 months rose to 11.3% from 10.9%, the government said Thursday. Just a year and a half ago, prices were rising at a less than 2% pace.

A day earlier, the government also reported that the prices consumers pay directly had risen 9.1% in the past 12 months — the biggest increase in almost 41 years.

If food, gas and retail trade margins are omitted, so-called core producer prices rose just 0.3% in June in a glimmer of hope that inflation pressures are starting to ease.

Yet inflation in the earlier stages of production suggest the upward pressure on prices are still intense.

Big picture: Wholesale and consumer prices are likely ease in July if the recent decline in oil sticks, but make no mistake: High inflation is here to stay for a while.

The Federal Reserve is trying to squelch inflation by sharply raising interest rates and slowing the economy, but the central bank runs the risk of causing a recession if it’s too aggressive.

Market reaction: The Dow Jones Industrial Average

and S&P 500

were set to open sharply lower in Thursday trades.

Retirement Weekly: Should I open a Roth IRA before I retire?

Previous article

Stock market news live updates: Stocks sink as Dimon warns of ‘negative consequences’ from inflation, Fed

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News