U.S. producer prices surge in July as tariffs increase costs
U.S. wholesale inflation surged last month, a sign that President Donald Trump’s tariffs are boosting costs and higher prices may be on the way.
The Producer Price Index for final demand climbed 0.9% in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported Thursday. Final demand prices were unchanged in June and moved up 0.4% in May. On an unadjusted basis, the index for final demand advanced 3.3% for the 12 months ended in July, the largest 12-month increase since rising 3.4% in February 2025.
Prices for final demand goods increased 0.7%. The index for final demand – less foods, energy, and trade services – moved up 0.6% in July, the largest increase since rising 0.9% in March 2022.
Spencer Hakimian, founder of Tolou Capital Management, called it the return of inflation.
“As I’ve been warning you all for months, we have a massive inflation problem in the United States again,” he wrote on X.
For the 12 months ended in July, prices for final demand less foods, energy, and trade services advanced 2.8%.
Isolated Rain Showers then Mostly Sunny
Latest News Stories
Illinois weighing a ban on sale of some smoke detectors over safety concerns
Illinois Quick Hits: General Assembly leaders promise budget transparency
Justice Department agrees to appearance waiver for Comey
Court strikes down Trump’s backup tariffs as unlawful
U.S. deficit projected to hit $2 trillion, double fiscal target
Iran targets Navy ships, U.S. responds; ceasefire in question
Fetterman: Democrats can’t ‘simply be the opposite’ of ‘whatever Trump says’
Bahamas parliament candidate faces scrutiny over ties to accused cocaine smuggler
Clashing housing availability, affordability proposals weighed in Springfield
Illinois Quick Hits: Unemployment rises again; growth continues in Champaign
Detention hearing continued to next week for suspect in Trump threats
Digital ad tax plan prompts discussion as impacts remain unclear
