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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

Undaunted by past, Elko, 8-0 Aggies thump LSU

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Undaunted by past, Elko, 8-0 Aggies thump LSU

BATON ROUGE, La. — Texas A&M coach Mike Elko isn’t interested in what the Aggies were or what they failed to accomplish during decades of underachievement. He is all about the 2025 Aggies, who are 8-0 after beating LSU 49-25 on Saturday night.

Texas A&M scored 35 straight points to pull away, empty out Tiger Stadium and celebrate with a large contingent of its fans in the southeast corner of the stadium.

“I keep saying this: It’s not about the past,” Elko said. “We got to stop, like, worrying about the past, thinking about the past, talking about the past. I’m excited for what this team is doing right now.

“This team is doing some really special things.”

The third-ranked Aggies are 8-0 for the first time since 1992, after their first win at LSU as an SEC member. Texas A&M has scored 40 or more points in four consecutive road games for the first time in team history, tying the SEC record, and finished with the most points against a ranked LSU team at Tiger Stadium since Georgia scored 52 in 2008.

“They tried to put a quote up there that I said that Death Valley was underwhelming,” Aggies quarterback Marcel Reed said. “And shoot, I guess it was. They didn’t do much to me.”

What stood out about Texas A&M’s rout was how unlikely it seemed at halftime, when No. 20 LSU led 18-14. The Aggies had gone through a miserable, albeit historically familiar, second quarter, when they had a punt blocked through the end zone for a safety, threw two interceptions and were outscored 11-0.

Texas A&M outgained LSU 258-189 at the half, but its mistakes created a halftime deficit for the first time this season. The Aggies’ only win in their previous 10 games while trailing at the half came against LSU last season.

“I said, ‘You’re the better team, but you have to play better football, and if you don’t play better football, you’re going to let one slip away tonight,'” Elko said of his halftime message.

Added Reed: “Elko definitely said some things. I can’t really remember every detail. It was aggressive, though, for sure.”

Reed felt Texas A&M was the superior team from the start of the game, but the Aggies had to prove it. They did it with their most complete quarter of the season, outscoring LSU 21-0 and outgaining the Tigers 132-14. The highlight came from star wide receiver KC Concepcion, who returned a punt 79 yards for a touchdown.

Texas A&M punted just once in the second half and forced four consecutive LSU punts. Elko credited the strong finish to strength and conditioning coach Tommy Moffitt, who held the same role at LSU from 2000 to 2021 until being ousted during the coaching transition from Ed Orgeron to Brian Kelly.

“Moffitt wanted this game just as bad as anyone else,” said Reed, who finished with 202 passing yards and 2 touchdowns, and 108 rushing yards and 2 scores. “I remember Thursday, he kind of brought in a tackling dummy with Brian Kelly’s face on it. Yeah, this one was an important one to him.”

Some LSU fans chanted for Kelly’s firing in the closing minutes as the Tigers, who began the season with national championship aspirations, lost for the third time in four games. LSU had been 20-1 in night games under Kelly.

“20-2,” Elko said when a reporter asked about Kelly’s record.

LSU is 4-5 in its past nine SEC games.

“Our fans are disappointed like any fan base would be,” said Kelly, who turned 64 on Saturday. “It stops with the head coach, so that responsibility falls with me.”

Elko is keenly aware of what Texas A&M has been, and what places like Tiger Stadium have represented for the program. He was the Aggies’ defensive coordinator in 2019 when LSU thumped the Aggies 50-7 in Heisman Trophy winner Joe Burrow’s final home game on the way to the national championship. Texas A&M had other losses in this stadium, big and small, stretching back to 1994, when it won 18-13.

“I told the kids this the other day, ‘I was the starting point guard on my high school basketball team the last time [Texas A&M] won here,'” Elko said.

He stopped short of saying he expected an 8-0 start, or such a dominant win in such a house of horrors for past Aggies teams. But Texas A&M’s different paths to victory this season — a last-minute comeback at Notre Dame, hard-nosed victories against Auburn and Arkansas, several blowouts — make Elko confident that his team can check all the boxes of a championship contender.

Texas A&M enters an open week before a November that will determine whether it secures its first College Football Playoff appearance.

“There’s definitely still a lot of things to be proven, and I feel like a lot of people in this country still don’t respect us as a team,” Reed said. “So no, we’re not trying to prove anybody wrong. We’re just going to go prove ourselves right.”

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Twenty warnings for Sir Keir Starmer from new deputy leader Lucy Powell

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Twenty warnings for Sir Keir Starmer from new deputy leader Lucy Powell

Labour’s new deputy leader Lucy Powell promised to be Sir Keir Starmer’s ally.

Yet in her victory speech she criticised his government and its record no fewer than 20 times. And told him to raise his game, or else.

Politics live: Follow for updates as Labour names new deputy leader

Here’s what she said – and what she meant:

  1. “Division and hate are on the rise. Discontent and disillusionment widespread.” What she meant: The Labour government has been a huge disappointment.
  2. “The desire for change is impatient and palpable.” What she meant: You’ve had 16 months to deliver change – voters are saying, “Get on with it”.
  3. “We have to offer hope, to offer the big change the country’s crying out for.” What she meant: Stop tinkering. Get more radical. You’ve got a huge Commons majority, after all.
  4. “We must give a stronger sense of purpose, whose side we’re on and of our Labour values and beliefs.” What she meant: We’re not doing enough for working people or tackling inequality.
  5. “People feel that this government is not being bold enough in delivering the kind of change we promised.” What she meant: Our voters are deserting us because they don’t see change.
  6. “I’ll be a champion for all Labour values and boldness in everything we do.” What she meant: Watch out! I’m going to hound you and hold your feet to the fire!
  7. “We won’t win by trying to out-Reform Reform, but by building a broad progressive consensus.” What she meant: Stop the lurch to the Right on immigration. We’re better than that.
  8. “It starts with wrestling back the political megaphone and setting the agenda more strongly.” What she meant: We need to sharpen up our communication and selling our message.
  9. “We’ve let Farage and his ilk run away with it.” What she meant: The Reform UK leader is running rings round us in communicating and campaigning. We’re too sluggish and flat-footed.
  10. “For too long the country and the economy has worked in the interests of the few and not the many.” What she meant: Winter fuel payment cuts were a disaster and the two-child benefit cap has to go.
  11. “Trickle down economics hasn’t worked.” What she meant: No more tax cuts for the rich. It’s time for a wealth tax, for example, to redistribute wealth.
  12. “Life has just got harder and harder, less and less secure in work, in housing, in making ends meet.” What she meant: We’re failing to tackle the cost of living crisis and housing shortages.
  13. “The deep-seated inequalities that have widened in wealth in regions in class in health need fundamentally redressing.” What she meant: We’re failing to look after our “red wall” voters.
  14. “Re-unite our voter coalition and re-unite the country.” What she meant: Start governing for everyone, urban and rural, rich and poor, North and South. Stop neglecting poorer regions.
  15. “We need to step up.” What she meant: For goodness sake, sort out the chaos in 10 Downing. Stop blaming aides and civil servants and sacking them. Get a grip!
  16. Members and affiliates “don’t feel part of the conversation or party of the movement right now. And we have to change that.” What she meant: Stop ignoring and alienating activists, MPs and unions.
  17. “Unity and loyalty comes from collective purpose, not from command and control.” What she meant: Stop the control freakery in parliament and party management. It’ll backfire.
  18. “Debating, listening and hearing is not dissent. It’s all strength.” What she meant: Listen to your backbenchers and stop suspending them when they vote against policies like welfare cuts.
  19. “As your deputy, my commitment is to change the culture.” What she meant: I’m going to stand up for rebels and critics and force you to ditch the control freakery and bad decisions.
  20. “At the election 16 months ago the British people voted for change. I’m here to do everything I can to make that change a reality.” What she meant: Raise your game, or else!

Read more from Sky News:
The one thing Farage and Polanski have in common
China ‘enemy’ reference removed from witness statement

She said it all with a smile, but there was menace there.

As deputy leader, Lucy Powell was always going to be a critical friend. So there you go, prime minister. Here’s 20 things you need to do for her to be more friend than critic.

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Politics

Who is Labour’s new deputy leader Lucy Powell and what does she stand for?

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Who is Labour's new deputy leader Lucy Powell and what does she stand for?

Lucy Powell has been elected as the deputy leader of the Labour Party.

But who is she and what does she stand for?

Powell began her career in politics working for Labour MPs Glenda Jackson and Beverley Hughes.

She then worked for a pro-EU campaign group.

After that, she ran Ed Miliband’s successful Labour leadership campaign and was his deputy chief of staff until she was elected as the MP for Manchester Central in 2012.

She has been at the forefront of Labour politics for over a decade, serving under Ed Miliband, Jeremy Corbyn and Keir Starmer.

After Labour won the last general election, she was appointed as the leader of the House of Commons in Starmer’s cabinet.

But last month she was sacked in the cabinet reshuffle and came to be seen as the anti-Starmer candidate.

During the deputy leadership campaign, Powell promised to “provide a stronger, more independent voice” for members of the Labour Party.

And in her acceptance speech, she said the government hadn’t been bold enough, and that it needed to step up.

So how much of a problem is she going to be for Keir Starmer?

Her new role – and being outside the cabinet – means she will be free to criticise the government, which could make life more difficult for the prime minister.

Read More:
Lucy Powell named Labour’s new deputy leader
Powell will take a ‘submarine approach’ – for now

Powell has been outspoken about her desire for the government to lift the two child benefit cap – and also called for the country to work for the many and not the few – a Corbyn-era slogan – and that Labour must stop handing the megaphone over to Reform and letting them run away with it.

Starmer will be conscious that an MP he sacked not long ago is now in a powerful role able to speak freely and attack his decisions.

But Powell is not free from her own controversies.

In May, Lucy Powell called grooming gangs a dog whistle issue – something she later had to clarify after it caused outrage among campaigners and opposition parties.

She also vocally defended Labour’s unpopular cut to winter fuel allowance while in cabinet, before the government then U-turned on the policy – she then criticised the proposed welfare cuts after she was sacked from government.

Powell insists she wants to help Keir Starmer, providing constructive criticism and a voice for Labour members.

But will Keir Starmer see it that way?

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