The numbers: The U.S. producer price index rose 0.3% in July, the Labor Department said Friday, up from a revised flat reading in June and the largest gain since January.
Economists polled by The Wall Street Journal had forecast a 0.2% advance.
The core producer price index, which excludes volatile food, energy prices, and trade services rose 0.2 in July, up from a 0.1% gain in the prior month.
Key details: Over the past year, headline producer price inflation is running at a 0.8% rate in July, up from 0.2% in the prior month.
Core prices are up 2.7% from a year earlier, matching the gain in June. Core PPI prices were running at a 5.8% rate in July 2022.
A big part of the increase in producer prices was in the services sector.
The cost of services rose 0.5% last month, up from a 0.1% drop in June. PPI for portfolio management spiked 7.6%.
The cost of goods rose 0.1% in July after a flat reading in the prior month.
Energy prices were flat in July, down sharply from a 0.7% gain in the prior month.
Wholesale food prices jumped 0.5% after a 0.2% fall in the prior month.
Big picture: Price pressures have been diminishing at the producer level much faster than at the consumer level. Economists are watching the inflation data closely to see if the July interest rate hike by the Federal Reserve was the last hike of the cycle.