WASHINGTON — Inflation at the wholesale level jumped a higher-than-expected 1% in July, dimming hopes for a slowdown in price increases.
The July gain in the producer price index, which measures price pressures before they reach consumers, matched the June increase with both months advancing by the highest amount since a 1.2% rise in January, the Labor Department reported Thursday.
Over the past 12 months, prices at the wholesale level are up a record 7.8%, surpassing the old record of a 7.3% gain set for the 12 months ending in June.
The report on wholesale prices followed a report on retail inflation on Wednesday that did show some slowing in price pressures. Consumer pries in July rose 0.5% compared to a 0.9% jump in June. Over the past year, retail prices are up a sizable 5.4%, the same 12-month gain that was seen in June with both months recording the largest annual gain since 2008.