Wholesale inflation in US picked up in July after pressures eased

Published

2 years ago

August 12, 2023

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Wholesale prices in the United States picked up slightly in July yet still suggested that inflationary pressures have eased this year since reaching alarming heights in 2022.

The Labor Department reported Friday that its producer price index which measures inflation before it hits consumers rose 0.8% last month from July 2022.

The latest figure followed a 0.2% year-over-year increase in June, which had been the smallest annual rise since August 2020.

On a month-to-month basis, producer prices rose 0.3% from June to July, up from no change from May to June.

Last month’s increase was the biggest since January. An increase in services prices, especially for management of investment portfolios, drove the month-to-month increase in wholesale inflation.

Wholesale meat prices also rose sharply in July.

Analysts said the July rise in wholesale prices, from the previous month’s low levels, still reflects an overall easing inflation trend.

The figures the Labor Department issued Friday reflect prices charged by manufacturers, farmers and wholesalers.

The figures can provide an early sign of how fast consumer inflation will rise in the coming months.

Since peaking at 11.7% in March 2022, wholesale inflation has steadily tumbled in the face of the Federal Reserve’s 11 interest rate hikes.

Excluding volatile food and energy prices, “core” wholesale inflation rose 2.4% from July 2022, the same year-over-year increase that was reported for June.

Measured month to month, core producer prices increased 0.3% from June to July after falling 0.1% from May to June.

On Thursday, the government reported that consumer prices rose 3.3% in July from 12 months earlier, an uptick from June’s 3% year-over-year increase.

But in an encouraging sign, core consumer inflation rose just 0.2% from June, matching the smallest month-to-month increase in nearly two years.

By all measures, inflation has cooled over the past year, moving closer to the Feds 2% target level but still remaining persistently above it.

The moderating pace of price increases, combined with a resilient job market, has raised hopes that the Fed may achieve a difficult soft landing: Raising rates enough to slow borrowing and tame inflation without causing a painful recession.

Many economists and market analysts think the Feds most recent rate hike in July could prove to be its last.

Before the Fed next meets Sept. 19-20 to decide whether to continue raising rates, it will review several additional economic reports.

They include another monthly report on consumer prices; the latest reading of the Feds favored inflation gauge; and the August jobs report.

Inflation began surging in 2021, propelled by an unexpectedly robust bounce-back from the 2020 pandemic recession.

By June 2022, consumer prices had soared 9.1% from a year earlier, the biggest such jump in four decades.

Much of the price acceleration resulted from clogged supply chains: Ports, factories and freight yards were overwhelmed by the explosive economic rebound.

The result was delays, parts shortages and higher prices.

But supply-chain backlogs have eased in the past year, sharply reducing upward pressure on goods prices.

Prices of long-lasting manufactured goods actually dipped in June.

Entertainment

Oscars set to leave ABC and will be streamed live on YouTube from 2029

Published

1 hour ago

December 18, 2025

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Oscars set to leave ABC and will be streamed live on YouTube from 2029

The Oscars will be streamed live on YouTube from 2029 after being broadcast on the ABC network for decades.

It means the annual film awards will be available to the video-sharing platform’s two billion users for free around the world in four years.

The Academy of Motion Picture Arts and Sciences announced the deal with Google-owned YouTube on Wednesday, saying the streaming giant will have the exclusive global rights to the Hollywood awards from 2029 to 2033.

YouTube will effectively be the home to all things Oscars, including red-carpet coverage, the Governors Awards and the Oscar nominations announcement.

The Academy Awards ceremony has been broadcast by ABC for most of its history, but 2028 will be its last year showing the Oscars as they celebrate their 100th anniversary.

“The Oscars, including red carpet coverage, behind-the-scenes content, Governors Ball access, and more, will be available live and for free to over two billion viewers around the world on YouTube, and to YouTube TV subscribers in the United States,” an announcement on the Academy Awards’ website read.

“We are thrilled to enter into a multifaceted global partnership with YouTube to be the future home of the Oscars and our year-round academy programming,” said academy chief executive Bill Kramer and academy president Lynette Howell Taylor.

They said the new partnership with the platform “will allow us to expand access to the work of the academy to the largest worldwide audience possible”.

‘Inspiring new generation of creativity and film lovers’

“The Oscars are one of our essential cultural institutions, honouring excellence in storytelling and artistry,” said YouTube chief executive Neal Mohan.

“Partnering with the academy to bring this celebration of art and entertainment to viewers all over the world will inspire a new generation of creativity and film lovers while staying true to the Oscars’ storied legacy.”

The awards will be available with audio tracks in many languages, in addition to closed captioning.

Last year’s Academy Awards were watched by 19.7 million viewers on the Disney-owned ABC, a five-year high but far below the show’s biggest audience of 57 million in 1998.

The network has been the broadcast home to the Oscars for almost its entire history. NBC first televised the Oscars in 1953, but ABC picked up the rights in 1961.

Aside from a period between 1971 and 1975, when NBC again aired the show, the Oscars have been on ABC.

UK

King meets Huntingdon train attack heroes, including guard who protected passengers

Published

1 hour ago

December 18, 2025

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King meets Huntingdon train attack heroes, including guard who protected passengers

The King has met survivors of last month’s Huntingdon train mass stabbing, during a special reception at Buckingham Palace.

He shook hands with train guard Samir Zitouni, who was seriously injured as he stepped in to protect passengers.

More than 10 people were hurt in the stabbing on the 6.25pm LNER service from Doncaster to London King’s Cross on 1 November, which diverted to Huntingdon.

The monarch also met Andrew Johnson, who previously served in the Royal Navy, and was driving the service at the time of the attack.

He was praised by Prime Minister Sir Keir Starmer for his quick thinking when he moved the train on to a slow line.

That decision allowed it to stop at Huntingdon station, leading to a quicker response time by emergency services and potentially saving lives.

Mr Zitouni was credited with saving multiple lives, but was left in a critical condition due to injuries he suffered in the attack.

Stephen Crean, a football fan who had been returning home after watching Nottingham Forest’s 2-2 draw with Manchester United, was also injured while fighting back to protect others during the incident.

Mr Crean said he would need plastic surgery following his injuries.

Amira Ostalski, a student who suddenly found herself in danger, said she ran into the buffet car where she picked up a metal tray to protect herself and her friend.

“I was honestly so petrified. I thought in that moment it was the last time I was ever going to be alive. I thought I was going to die,” she said.

Anthony Williams was charged with 10 counts of attempted murder, one count of actual bodily harm and one count of possession of a bladed article following the train attack.

He remains in custody pending further court hearings scheduled for next year.

Technology

Instacart shares drop on report that FTC is probing company over AI pricing tool

Published

2 hours ago

December 17, 2025

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Instacart shares drop on report that FTC is probing company over AI pricing tool

Cheng Xin | Getty Images

Shares of grocery delivery service Instacart dropped about 7% in extended trading on Wednesday, following a report that said the U.S. Federal Trade Commission has begun an investigation into the company’s pricing practices.

The FTC sent a civil investigative demand to Instacart, Reuters reported, citing unnamed people.

A study released last week showed that prices for the same products in the same supermarkets that work with Instacart can vary by around 7%, which can result in over $1,000 in extra annual costs for customers. Instacart responded by saying that retailers determine prices listed in the app.

In 2022, Instacart spent $59 million to acquire Eversight, a company specializing in artificial intelligence-driven pricing and promotions for retailers and consumer packaged goods. Instacart sought to “create compelling savings opportunities for customers in real-time” with Eversight, according to a regulatory filing.

The FTC and Instacart did not immediately respond to requests for comment.

Read Reuters’ full report here.