US wholesale inflation cooled in July in sign that price pressures are continuing to ease

WASHINGTON (AP) — Wholesale price increases in the United States eased in July, suggesting that inflation pressures are further cooling as the Federal Reserve moves closer to cutting interest rates, likely beginning next month.

The Labor Department reported Tuesday that its producer price index — which tracks inflation before it reaches consumers — rose 0.1% from June to July. That was down from a 0.2% rise a month earlier. And compared with a year earlier, prices were up 2.2% in July. That was the smallest such rise since March and was down from a 2.7% year-over-year increase in June.

The July wholesale figures reflect a broad and steady slowdown in price increases, which peaked at a four-decade high in mid-2022 but are now moving toward the Fed’s 2% inflation target. On Wednesday, the Labor Department will release the most well-known inflation measure, the consumer price index.

Tuesday’s report showed that prices in the nation’s vast service sector fell 0.2% last month, the biggest drop since March 2023. Goods prices rose 0.6%, largely because gasoline prices jumped 2.8% from June to July.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«RELATED COVERAGE» data-gtm-topic=«No Value» data-show-loadmore=«true» data-gtm-modulestyle=«List B»> <bsp-custom-headline custom-headline=«div»> RELATED COVERAGE </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Stock market today: Wall Street opens higher after inflation report comes in better than expected </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Americans’ refusal to keep paying higher prices may be dealing a final blow to US inflation spike </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> US