Report: Wholesale price hikes eased last month

WASHINGTON — Wholesale price increases in the U.S. eased in July, suggesting inflation pressures are further cooling as the Federal Reserve moves closer to cutting interest rates.

The Labor Department reported Tuesday that its producer price index — which tracks inflation before it reaches consumers — rose 0.1% from June to July. That was down from a 0.2% rise a month earlier.Compared with a year earlier, prices were up 2.2% in July — the smallest such rise since March and down from a 2.7% year-over-year rise in June.

The July wholesale figures reflect a broad and steady slowdown in price increases, which peaked at a four-decade high in mid-2022 but are now moving toward the Fed's 2% inflation target. On Wednesday, the Labor Department will release the most well-known inflation measure, the consumer price index.