Producers in the US raised their prices at the fastest pace in more than three years last month as companies grappled with new costs from tariffs introduced by US President Donald Trump.
The producer price index, which measures the selling price commanded by US producers, jumped 0.9% from June to July, after being flat the previous month, according to the Labor Department.
That was a much bigger leap than the 0.2% forecast by analysts, who predict that the higher wholesale prices will soon mean higher prices for US consumers.
The report renewed worries about inflation in the months ahead, despite recent data showing that the increase in consumer prices had held steady at 2.7% in July.
The average effective tariff rate in the US has soared since Trump has come into power and put new levies on most goods entering the country.
