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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.

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Sports

Ohio St. dominates Michigan to snap losing streak

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Ohio St. dominates Michigan to snap losing streak

ANN ARBOR, Mich. — Julian Sayin threw three touchdown passes, including a 35-yarder to Jeremiah Smith on a fourth down in the second quarter, and No. 1 Ohio State beat No. 15 Michigan 27-9 in a dominant performance on Saturday.

The defending national champion Buckeyes (12-0, 9-0 Big Ten, No. 1 CFP) likely earned a first-round bye in the College Football Playoff. They can keep their top seed with a win against No. 2 Indiana (12-0, 9-0, No. 2 CFP) in the conference championship game Saturday night in Indianapolis.

Ryan Day should sleep well, a year after losing The Game when his team was favored by about three touchdowns. The upset extended his losing streak in the series to four games and sparked speculation he might also lose his job.

The Wolverines (9-3, 7-2) started strong with two field goals and an interception on the first three possessions of the game, but couldn’t generate pressure when Ohio State wanted to pass.

After throwing an interception on his second snap, redshirt freshman Sayin took advantage of the time and space he had to throw.

Sayin was 6 of 6 for 68 yards with two touchdowns on third and fourth down in the first half, including a 4-yard throw to Brandon Inniss with 16 seconds left that made it 17-9 at the break. He finished 19 of 26 for 233 yards and threw for at least three touchdowns for the sixth time this season.

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Sports

Sources: Sumrall the favorite to land Florida job

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Sources: Sumrall the favorite to land Florida job

Tulane coach Jon Sumrall has emerged as the clear favorite to be the next head coach of the Florida Gators, sources told ESPN’s Pete Thamel.

Florida turned its attention away from Ole Miss coach Lane Kiffin earlier this week after getting the sense through irregular communication that he is interested in other options, likely a move to LSU or remaining with the Rebels, sources told ESPN on Friday.

Sumrall is expected to make a decision on his future by Sunday morning as he considers staying at Tulane or a move to Gainesville. He also received significant interest from Auburn, but the Tigers have since shifted their focus to other candidates, another indicator that Florida looms as the clear leader for Sumrall’s services, sources said.

Sumrall, a former SEC player at Kentucky, where he later served as an assistant coach and co-defensive coordinator, is 18-7 in two seasons at Tulane. He also won back-to-back Sun Belt titles as head coach at Troy in 2022 and 2023.

Sumrall, 43, garnered outside interest after his first season with Tulane, earning a contract extension after just one season at the helm.

Tulane (9-2) hosts Charlotte on Saturday night in its regular-season finale. The Green Wave can clinch a spot in the American Conference championship game against North Texas with a win over the 49ers.

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World

Hong Kong mourns those lost to fire as investigators search for remains

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Hong Kong mourns those lost to fire as investigators search for remains

Grief was not lonely today in Hong Kong. Three days after the worst fire in the history of modern Hong Kong, it feels as though it has barely sunk in.

The weekend at least lent them time to pay tribute, and gave them some space to reflect.

People came in droves to lay flowers, so many a queuing system was needed.

People queue with flowers near the site to mourn the victims of the deadly fire. Pic: AP
Image:
People queue with flowers near the site to mourn the victims of the deadly fire. Pic: AP

Official books of condolences were also set up in multiple parts of the city.

It was the first day large teams of investigators were able to enter the site. Dozens of them in hazmat suits were bused in, their work the grimmest of tasks.

Every so often you could see a flashlight peep through the window of an upper blackened window, a reminder that the fire services are still undertaking dangerous work.

But the reach of the authorities is ramping up here.

Firefighters walk through the burned buildings after the deadly fire. Pic: AP
Image:
Firefighters walk through the burned buildings after the deadly fire. Pic: AP

Yesterday a grass roots aid distribution centre was the vibrant heart of the response.

They received notice at 4am that they needed to pack up and move on. By 10.30am, the mountains of donations were gone, residents watched on, bewildered.

The task apparently will be handed over to professional NGOs.

“I think the government’s biggest concern is due to some past incidents,” one organiser tells us. “They may liken this to previous events. The essence looks similar.”

Pic: AP
Image:
Pic: AP

She’s careful with her words, but she’s clearly hinting at major pro-democracy protests that were crushed by authorities in 2019.

Any sort of mass gathering is now seen as a risk, the system is still very nervous.

And they might well be because people here are angry.

What, they ask, did the government know? What did it choose to ignore?

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How Hong Kong’s government failed to act on fire fears

Indeed, Sky News has learnt that residents raised their fears over fire safety connected to extensive renovations on Wang Fuk Court as early as September 2024.

They flagged the suspected flammability of green nets being used to cover the building.

An email response from the Labour Department was sent a few months later to Jason Poon, a civil engineer-turned-activist, who was working with residents. It insists that “the mesh’s flame retardant properties meet safety standards”.

But many clearly didn’t believe it. Posts spanning many months on a residents’ Facebook group continued to voice their fears.

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Hong Kong fire survivors supported by community

When a much smaller fire broke out in the city last month, one resident posted: “All the materials outside are flammable, I feel really worried.”

“I feel that same way” another replied. “The government has no sense of concern.”

For Poon, who dedicates much of his time to fighting lax safety standards in Hong Kong’s construction industry, the whole experience has been devastating.

“They knew all the maintenance was using corner-cutting materials, but they didn’t do anything,” he says.

“This is a man-made disaster.”

We put these allegations to Hong Kong’s Labour Department but they have not yet responded to our request for comment.

Grief may still be the prominent force here, but anger is not that far behind.

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