US producer prices rose 0.9% mom in July 2025, rebounding from a flat reading in June and much higher than expectations of 0.2%. It is the biggest increase in producer prices since June 2022. Cost of services went up 1.1%, led by a 3.8% surge in margins for machinery and equipment wholesaling. Cost also increased for portfolio management; securities brokerage, dealing, investment advice; traveler accommodation services; automobiles retailing; and truck transportation of freight. Prices of goods increased 0.7%, led by a 38.9% jump in fresh and dry vegetables. Prices also went up for meats, diesel fuel, jet fuel, nonferrous scrap, and eggs. Conversely, gasoline decreased 1.8%. Meanwhile, core PPI, which excludes food and energy, also went up 0.9%, compared to forecasts of 0.2%. Year-on-year, headline producer inflation accelerated to a five-month high of 3.3% and above expectations of 2.5%. Annual core producer inflation jumped to 3.7% from 2.6%, higher than estimates of 2.9%