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Producer Price Index Shows Inflation Eases in July

US Wholesale Inflation Cools Down

Price Pressures Continue to Decline

WASHINGTON (AP) — Wholesale price increases in the United States eased in July, a sign that price pressures are continuing to moderate.

The Labor Department reported Tuesday that its producer price index (PPI), which tracks inflation before it reaches consumers, rose by 0.5% in July, following a 1.1% increase in June.

The PPI's annual rate of increase slowed to 9.8% in July, down from 11.3% in June, indicating that inflation may be stabilizing after a period of rapid growth.

Economists had expected the PPI to rise by 0.8% in July and for the annual rate to moderate to 10.4%.

The easing of wholesale inflation is a positive sign for the U.S. economy, as it suggests that price pressures are beginning to wane. However, the PPI remains elevated by historical standards, and the Federal Reserve is likely to continue raising interest rates in an effort to bring inflation back to its 2% target.