Topline
Wholesale prices increased by an unexpected 0.9% in July, the Bureau of Labor Statistics reported on Thursday, causing markets to shudder after reaching record highs on a much more optimistic inflation report from the consumer price index on Tuesday.
The producer price index indicated wholesale prices rose 0.9% in July for an increase in 3.3% for the year, after remaining flat in June.
The jump in final demand caught economists polled by Reuters by surprise, who expected it to rise a more modest 0.2%.
Price increases for services drove the rise, the BLS said, with final demand rising 1.1%—its largest increase since March 2022.
Prices for goods also increased, which the BLS attributed in large part to prices for food rising 1.4%.
Both the S&P 500 and Nasdaq slipped after the news broke on Thursday morning, but largely recovered and remained flat by 10:40 a.m.
This is a breaking story and will be updated.