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Businesses Costs Increased Strongly in July
The American Conservative ^ | August 14, 2025 | Joseph Addington

Posted on 08/18/2025 3:37:29 PM PDT by Angelino97

The U.S. Producer Price Index (PPI) increased by 3.3 percent since last July according to this month’s BLS report, a rate that could herald higher inflation in the future.

PPI measures the total cost of goods and services to businesses, rather than to consumers. A high PPI means that input costs for producers are increasing, a situation that usually leads to higher prices for consumers (and thus higher inflation) in the future. When PPI increases faster than inflation, as it did in July, business costs are increasing faster than prices, denting profits.

The July increase is the highest since June 2022, and could signal trouble for the economy. The statistic is also troubling for the Trump administration, which has been pushing to lower interest rates at the Federal Reserve, something the central bank will be more reluctant to do if inflation increases.

Increased costs to business due to higher tariffs on imports could also be a factor in last month’s number, a situation that will only worsen after more tariffs were implemented in early August.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: butletsblamebiden
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1 posted on 08/18/2025 3:37:29 PM PDT by Angelino97
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To: Angelino97

oh good. More inflation that’s what I need.


2 posted on 08/18/2025 3:38:38 PM PDT by MarlonRando
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To: Angelino97

3.3% is NOT a 50% markup. But you watch prices, they will use this report to raise markup 35% to 50%.


3 posted on 08/18/2025 3:43:11 PM PDT by Openurmind (AI - An Illusion for Aptitude Intrusion to Alter Intellect. )
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To: Angelino97
Final demand services: The index for final demand services moved up 1.1 percent in July, the 
largest advance since rising 1.3 percent in March 2022. Over half of the broad-based July increase is 
attributable to margins for final demand trade services, which jumped 2.0 percent. (Trade indexes 
measure changes in margins received by wholesalers and retailers.) Prices for final demand services 
less trade, transportation, and warehousing and for final demand transportation and warehousing 
services advanced 0.7 percent and 1.0 percent, respectively.

Product detail: Thirty percent of the July rise in prices for final demand services can be traced to 
margins for machinery and equipment wholesaling, which jumped 3.8 percent. The indexes for 
portfolio management; securities brokerage, dealing, investment advice, and related services; traveler 
accommodation services; automobiles retailing (partial); and truck transportation of freight also 
advanced. In contrast, prices for hospital outpatient care fell 0.5 percent. The indexes for furniture 
retailing and for pipeline transportation of energy products also declined. (See table 2.)

Final demand goods: Prices for final demand goods moved up 0.7 percent in July, the largest 
advance since rising 0.7 percent in January. Forty percent of the broad-based increase in July can be 
attributed to the index for final demand foods, which jumped 1.4 percent. Prices for final demand 
goods less foods and energy and for final demand energy moved up 0.4 percent and 0.9 percent, 
respectively.

Product detail: A quarter of the July advance in the index for final demand goods can be traced to 
prices for fresh and dry vegetables, which jumped 38.9 percent. The indexes for meats, diesel fuel, jet 
fuel, nonferrous scrap, and eggs for fresh use also rose. Conversely, prices for gasoline decreased 1.8 
percent. The indexes for canned, cooked, smoked, or prepared poultry and for plastic resins and 
materials also declined.

4 posted on 08/18/2025 3:44:27 PM PDT by pierrem15 ("Massacrez-les, car le seigneur connait les siens" )
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To: pierrem15
Machinery distributors raised prices (tariffs maybe) and food.

There was a big splurge of pre-tariff purchases but stocks may now be exhausted.

Why food keeps going up is a big question mark.

5 posted on 08/18/2025 3:47:22 PM PDT by pierrem15 ("Massacrez-les, car le seigneur connait les siens" )
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To: pierrem15

We are all going to die to death.


6 posted on 08/18/2025 3:49:22 PM PDT by Lazamataz (I'm so on fire that I feel the need to stop, drop, and roll!)
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To: Lazamataz

Now that is redundancy for sure...


7 posted on 08/18/2025 3:56:29 PM PDT by Openurmind (AI - An Illusion for Aptitude Intrusion to Alter Intellect. )
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To: pierrem15

“Why food keeps going up is a big question mark.”

They are price fixing. They refuse to come down from Covid era prices even if their costs are less now.


8 posted on 08/18/2025 3:59:41 PM PDT by Openurmind (AI - An Illusion for Aptitude Intrusion to Alter Intellect. )
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To: pierrem15
Why food keeps going up is a big question mark.

Significant upward pressure on input costs and significant downward pressure on the valuation of the dollar. Both will continue to put significant downward pressure on our quality of life.

Seems complicated but it's not.

9 posted on 08/18/2025 4:04:16 PM PDT by AAABEST (That time Washington DC became a corrupted, existential threat to us all...)
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To: Angelino97
Increased costs to business due to higher tariffs on imports could also be a factor in last month’s number, a situation that will only worsen after more tariffs were implemented in early August.

On the other side of the income statement, President Trump has been talking about the hundreds of billions that the United States has made in tariff payments to us. That number represents foreign countries buying products from American companies, so someone is making a profit, even if their materials costs are going up, too.

-PJ

10 posted on 08/18/2025 4:07:45 PM PDT by Political Junkie Too ( * LAAP = Left-wing Activist Agitprop Press (formerly known as the MSM))
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To: pierrem15; Openurmind
“Why food keeps going up is a big question mark.”

If you're talking about retail prices at grocery stores, at least in blue cities, shoplifting has gone way up.

I've seen shoplifters in stores. I reported them to the security guard. Who then shrugs and says there's nothing he can do

11 posted on 08/18/2025 4:12:10 PM PDT by Angelino97
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To: Angelino97

It is not just shoplifting. Retail has now cracked down on that hard the last several months. All the middlemen big corporations who supply just about all food stuffs REFUSE to drop markup. Example Cargill. I grew up in the business...


12 posted on 08/18/2025 4:16:09 PM PDT by Openurmind (AI - An Illusion for Aptitude Intrusion to Alter Intellect. )
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To: Openurmind

Some businesses need to be broken up.


13 posted on 08/18/2025 5:09:01 PM PDT by kaktuskid
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To: kaktuskid

“Some businesses need to be broken up.”

Absolutely. Like Cargill, they literally own just about all food supply in the world...


14 posted on 08/18/2025 5:37:23 PM PDT by Openurmind (AI - An Illusion for Aptitude Intrusion to Alter Intellect. )
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To: Openurmind

Start bringing up price fixing investigations and the prices will start going down.


15 posted on 08/18/2025 8:48:43 PM PDT by kaktuskid
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To: Openurmind

Another is the SOBs from Arkansaw...Tyson.


16 posted on 08/18/2025 8:49:42 PM PDT by kaktuskid
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To: kaktuskid

BlackRock Inc. increases ownership in TSN / Tyson Foods, Inc.

https://fintel.io/news/blackrock-inc-increases-ownership-in-tsn-tyson-foods-inc-0.17288752250034

Top holders of Tyson Foods, Inc. sourced from 13F and NPORT filings include:

Vanguard Group Inc with 34,809,672 shares (9.59% ownership)

BlackRock Inc. with 21,005,871 shares (5.79% ownership)

Price T Rowe Associates Inc /md/ with 14,152,243 shares (3.90% ownership)

State Street Corp with 13,720,373 shares (3.78% ownership)

BlackRock, Vanguard, and State Street are all collaborating to price fix. They are Globalists who hate Trump and are trying to destroy his efforts to improve our economy.


17 posted on 08/19/2025 3:39:38 AM PDT by Openurmind (AI - An Illusion for Aptitude Intrusion to Alter Intellect. )
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To: Angelino97

If you are a conservative then you are for the tariff.


18 posted on 08/19/2025 3:43:03 AM PDT by central_va ( I won't be reconstructed and I do not give a damn...)
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To: Angelino97

I’m not an economist, but our grocery bills are higher than ever.

And going out to eat is insane; we’ve cut way back.

But people paid super high prices pre-Trump, so vendors know customers will pay at least that much. Why would they even consider lowering prices, even if they can — even if their prices when buying are going down?


19 posted on 08/19/2025 4:01:55 AM PDT by MayflowerMadam (It's hard not to celebrate the fall of bad people. - Bongino)
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To: MayflowerMadam

Beef has become INSANE if the prices don’t come down it will be rotting on the shelves!! I am assuming that the vendors are still Australian and the tariffs are kicking in, I wonder how long it is going to take to get good old American beef on the shelves, are these major grocery stores under contracts with these vendors in Walmart a beef chuck pot roast was $30.00 and up INSANITY!!!!


20 posted on 08/19/2025 4:16:42 AM PDT by Trump Girl Kit Cat (Yosemite Sam raising hell )
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