The inflation relates to the return to the high price index in July more than expected

Sentence It increased more than expected in July, raising concerns about the return of inflationary pressure in the economy.

The work statistics office was issued on Thursday Product Prices Index (PPI) For July, which showed an increase of 0.9 % over the previous month and 3.3 % over last year.

These producers’ price index numbers were much hotter than price expectations, which rise 0.2 % on a monthly basis and 2.5 % over last year, which were estimated by the economists covered by LSEG.

Core PPI, which excludes volatile ingredients such as food and energy, increased by 0.9 % over last month, increased by 3.7 % from last year – much higher than LSEG estimates by 0.2 % and 2.9 %, respectively. The monthly increase was 0.9 % in the basic producers’ price index the largest increase since March 2022.

The official says that the current monetary policy position in the federal reserve is “exactly where we want to be.”

The product price index increased to 3.3 % after it was initially reported by 2.3 % in June and slightly decreased to 2.4 % with this report. Jump Basic ppi To 3.7 % comes after only 2.6 % in June. The main address and Core PPI did not show a monthly growth in June before he rising in July.

Service prices increased by 1.1 % in July, which was the largest increase since an increase of 1.3 % in March 2022. More than half of the wide increase in July prices was attributed to commercial service margins, which jumped by 2 % and measuring changes in the margins received by wholesalers and retail dealers.

The margins of machines and equipment jumped with wholesale trade by 3.8 % in July, as they represented about 30 % of the monthly rise – while financial services, travel services, Retail cars The trucks moved from the shipping also rose.

The price of goods has recorded its largest gains since January, as it increased by 0.7 %, with a strong increase in prices Vegetables, meat and eggs.

BESSENT Treasury says it does not support the suspension of monthly job reports

“The product price index indicates that inflation is nothing but the story. Some people believe that it will be after the printing of CPI on Tuesday,” said Chris Larkin, Managing Director of Trade and Investment in the Morgan Stanley Trade. “This does not run out of the door to reducing September prices, but based on the initial reaction to the market, the opening may be a little smaller than it was two days ago.”

“The report of the producers’ price index this morning and explosive with the high side against expectations will strengthen the decision of the Federal Reserve” waiting and seeing “.

“As a result, the markets will have to dig deep to see the world as it is – not how they want to be. This warns of higher rates and the least possibility of reducing the Federal Reserve rate in September.” “Once again, critics may also challenge the accuracy of numbers and quarterly predictions.”

The inflation cools a little in July of the previous month

Chris Zakarili, chief investment official at Northlight Asset Management, indicated that Federal Reserve He will continue to get more inflation data-including the price index and CPI price index as well as the PCE-as well as another report on jobs before the next interest rate decision in mid-September, but he said it could reduce optimism about expectations to reduce prices.

“The significant rise in the product price index (PPI) shows this morning that inflation roaming the economy, even if consumers do not feel after that. Given the duration of the number of the consumer price index on Tuesday, this is an unwanted surprise for upward treatment and you are likely to relax some of the optimism of the” high guarantee rate. “

The market’s reaction to the most hot producers’ price index report was expected to restore its view of the size and the possibility of reducing interest rates in the Federal Reserve on September 17.

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The risk of leaving the Federal Reserve increased to the rate of standard federal funds without changing the current range of 4.25 % to 4.5 % to 7.5 % from Thursday morning, up from 0 % a day ago, according to the CME Fedwatch tool.

The possibility of 50-basis reduced from 5.7 % yesterday to 0 % in the aftermath of the report, while the chances of a slightly reduced 25-Basis reduced from 94.3 % to 92.5 % during the last day.

Reuters contributed to this report.