Skip to main contentSkip to main content

    Prices at the wholesale level fell from June to July, the first month-to-month drop in more than two years and a sign that some of the U.S. economy’s inflationary pressures cooled last month. Thursday’s report from the Labor Department showed that the producer price index — which measures inflation before it reaches consumers — declined 0.5% in July. It was the first monthly drop since April 2020 and was down from a sharp 1% increase from May to June. The easing of wholesale inflation suggests that consumers could get some relief from relentless inflation in the coming months.

      Consumers struggling with skyrocketing prices for food, gas, autos and rent got a tantalizing hint of relief last month, when prices didn’t budge at all from June after 25 straight months of increases. With gas prices continuing to fall, inflation is probably slowing further this month. So has the worst bout of inflation in four decades possibly peaked? Economists say it’s way too soon to know for sure. Even if some prices should keep declining, others — housing costs, for example — are almost sure to remain painfully high. And that means there’s likely still a long way to go before inflation will get anywhere close to the 2% annual pace that Americans were long accustomed to.

      Affiliate

      Get up-to-the-minute news sent straight to your device.

      Topics

      Breaking News