A key pipeline inflation indicator unexpectedly increased in July, driven mainly by an increase in wholesale services.
According to data released by the U.S. Bureau of Labor Statistics on Aug. 14, the producer price index (PPI) increased by 0.9 percent last month, from the zero percent reading in June.
The consensus estimate among economists for the PPI, which measures prices paid for goods and services by businesses, suggested a 0.2 percent increase.
A majority of the broad-based increase was driven by a more than 1 percent rise in final demand services, the largest monthly gain since March 2022, the bureau said.
Within the services index, a 2 percent boost for trade services was the chief cause. Declines in hospital outpatient care, furniture retail, and pipeline transportation for energy products partially offset this….