Producer inflation was higher than expected in July


Producer inflation increase more than expected in July.

It shows final demand increased 0.3 percent, slightly up from the 0.2 percent expected. The monthly increase was the highest since January, and prices right now are 0.8 percent higher than a year ago.

Food costs were up half a percent while energy costs were unchanged.

The PPI measures wholesale prices before they are passed along to the consumer, so this could indicate that inflation will inch even higher next month.