US wholesale prices rise in July

WASHINGTON, Aug 11 (AFP): US wholesale prices picked up in July on a surge in services costs, according to government data released Friday, although the overall inflation figure remains muted.
The bigger-than-expected rise in the July producer price index (PPI) indicates that services prices are still buoyant, even as increases in the cost of goods are tepid.
Wholesale prices rose by 0.3 per cent from June to July, after a flat reading in the month before, according to Friday's Labor Department data.
"PPI inflation surprised to the upside in July," High Frequency Economics' chief US economist Rubeela Farooqi wrote in a note to clients.
But headline producer prices are well below two percent, she said, adding that annual changes in measures of underlying inflation are also moving towards target.
Economists surveyed by MarketWatch had expected a slightly lower headline figure of 0.2 per cent.