The cost of wholesale goods and services — where rising inflation tends to show up first — in July posted the biggest increase in three years, possibly heralding a sizable acceleration in price increases tied to higher U.

The economic forecast is getting bleaker by the month. In July, wholesale inflation rose at the fastest monthly pace since June 2022. The producer price index jumped 0.9% from June to July – more than four times what economists expected.

The producer price index for July suggests companies may be feeling the sting of inflation and consumers could be next.