U.S. producer prices rose drastically in July, marking the biggest monthly gain since June 2022, according to the latest government data.

The Bureau of Labor Statistics released its monthly Producer Price Index report on Aug. 14, showing that final demand increased 0.9% month-over-month during July 2025, following a flat June and a 0.3% increase in May. July’s figure was far above the 0.2% monthly increase forecasted by economists.

On an annual basis, July’s PPI rose 3.4%, up from 2.3% in June and 2.6% in May. The annual gain was the largest since February.

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July’s increase was heavily impacted by prices for final demand services, which increased 1.1% month-over-month — the largest advance since jumping 1.3% in March 2022. This followed a 0.3% increase in June. Meanwhile, the broad-based monthly increase was attributable to margins for final demand goods, which rose 2.0%.

U.S. Producer Price Index Month-Over-Month

source: tradingeconomics.com

The PPI tracks average price shifts at the wholesale level before they reach customers

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Core PPI — which excludes volatile food and energy categories — increased 0.6% in July month-over-month, the biggest gain since March 2022. This followed an unchanged June and a 0.1% increase in May. Core PPI for the 12 months that ended in July rose 2.8%, following June’s 2.6% increase.

U.S. Producer Price Index Year-Over-Year

source: tradingeconomics.com

The Bureau of Labor Statistics released its monthly Consumer Price Index summary on Aug. 12, which increased a 0.2% for its all-items index month-over-month, following a 0.3% gain in June and a 0.1% increase in May. The CPI all-items index increased 2.8% for the 12 months that ended in July.

Core consumer inflation rose 0.3% month-over-month — the largest gain since January’s 0.4% — and on a year-over-year basis, July’s core inflation rose 2.7%.