Posted on 08/14/2025 7:19:30 AM PDT by lasereye
U.S. wholesale inflation surged unexpectedly last month, signaling that President Donald Trump’s sweeping taxes on imports are pushing costs up and that higher prices for consumers may be on the way.
The Labor Department reported Thursday that its producer price index — which measures inflation before it hits consumers— rose 0.9% last month from June, biggest jump in more than three years. Compared with a year earlier, wholesale prices rose 3.3%.
The numbers were much higher than economists had expected.
Prices rose faster for producers than consumers last month, suggesting that U.S. importers may, for now, be eating the cost of Trump's tariffs rather than passing them on to customers.
“It will only be a matter of time before producers pass their higher tariff-related costs onto the backs of inflation-weary consumers,” wrote Christopher Rupkey, chief economist at fwdbonds.
Excluding volatile food and energy prices, so-called core producer prices rose 0.9% from June, biggest month-over-month jump since March 2022. Compared with a year ago, core wholesale prices rose 3.7% after posting a 2.6% year-over-year jump in June.
Wholesale food prices rose 1.4% from June, led by a 38.9% surge in vegetable prices. The price of home electronic equipment gained 5% from June. Both are heavily imported in the U.S.
But some aspects of Thursday's producer price report were puzzling, including a big jump in profit margins at retailers and wholesalers. Economist Stephen Brown at Capital Economics found the increase "to put it lightly, counterintuitive"
The wholesale inflation report two days after the Labor Department reported that consumer prices rose 2.7% last month from July 2024, same as the previous month and up from a post-pandemic low of 2.3% in April. Core consumer prices rose 3.1%, up from 2.9% in June. Both figures are above the Federal Reserve’s 2% target.
(Excerpt) Read more at finance.yahoo.com ...
That was the Bidenflation price surge. Everybody thought that was bad, as they should have.
Will retailers and wholesalers continue to absorb a lot of the tariffs? I would not count on it.
Wholesale food prices rose 1.4% from June, led by a 38.9% surge in vegetable prices.
There's a bunch of low IQ people who actually think that makes sense. They'll give some reason like "They've been taking our manufacturing for years because they pay such low wages!". Memo to the low IQ folks: We're talking about food here.
A lot of the food we import isn't grown here at all. Another thing we could get from the low IQ people is that people need to stop eating those foods. IOW it's our job to change our diet to make Trump's tariffs work or something. But their low IQ brains can't explain what the purpose of tariffs on that food is in the first place.
I guess some may believe importing anything hurts the economy - a very low IQ idea. IOW the objective is an economy that imports nothing - an extremely low IQ and possibly psychotic notion.
Imported foods that are grown here can't be replaced with domestic sources very quickly. It takes a while to plant more acreage and then wait for it to grow. That could be a sizeable amount of acreage.
To be adjusted lower after the story does its damage.
“Prices rose faster for producers than consumers last month, suggesting that U.S. importers may, for now, be eating the cost of Trump’s tariffs rather than passing them on to customers.”
That’s what counts. Been obvious for a while.
This means the Japanese auto industry -- with this 15% tariff -- gets to compete with U.S. automakers that are now grappling with 25% to 50% tariffs on imported steel and aluminum.
This kind of mental retardation is actually comical.
The reason for the jump in the PPI was a massive spike in “portfolio management services” and “airline tickets.” Without these outliers, the PPI rate would have been inline with the analysts’ forecast. Also, I would hardly call these items “tariff-related.”
I would hardly call its a “surge” overall either
You average Joe voter which makes up the majority of voters doesn’t care a squat about the particulars. If the economy is not good come mid-terms Trump’s agenda is halted in its tracks. This is the one singular item that can tank the great work he has done.
Wait, stop. You’re challenging the loud mouth doom sayers best day to crow in months with your facts.
We can’t have that!
Until domestic sources of steel become available. You globalists are an evil bunch on par with human trafficking losers. Maybe worse.
Who is getting fired today?
Sounds like you are a globalist. Spit.
So don’t use imported steel and aluminum. We still make those here don’t we?
***********
The PPI jump was mostly related to SERVICES which suggests that companies are absorbing tariff costs by increasing their margins for final demand trade services. At least that's what I reading elsewhere.
So Japanese makers are actually considering relocating manufacturing to Japan and importing to America. Steel and aluminum tariffs had a negative economic impact in terms of job losses Trump 1 and there is no reason to expect a different result this time.
Pssst! Your Dunning-Kruger is showing.
< / low IQ >
You forgot the close tag. Not surprising, naturally. 😉
They already are. The auto industry is using them. And they’re competing with Japanese producers who can use cheaper Asian steel and only pay a 15% tariff.
How long do you think that’s going to go on? LOL.
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