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Wholesale Inflation Soars 0.9% in July, Fed on Alert

8/16/2025

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Summary

Story summary

U.S. wholesale inflation increased by 0.9% in July, the highest rise in over three years, largely due to a 38.9% surge in vegetable prices.
Core producer prices also rose by 0.9%, with year-over-year wholesale prices up 3.3%.
Businesses are absorbing tariff costs, postponing price increases for consumers.
The Federal Reserve may reevaluate interest rate cuts in response to inflation.

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Story summary

U.S. wholesale inflation increased by 0.9% in July, the highest rise in over three years, largely due to a 38.9% surge in vegetable prices.
Core producer prices also rose by 0.9%, with year-over-year wholesale prices up 3.3%.
Businesses are absorbing tariff costs, postponing price increases for consumers.
The Federal Reserve may reevaluate interest rate cuts in response to inflation.