Economic Trends
U.S. Cutting Tool Orders Tick Down in August, Shipments Hold Steady
October 21, 2026
Economic Trends
July Wholesale Inflation Saw Biggest Surge in Over 3 Years
U.S. producer prices rose sharply in July, driven by broad increases in service and goods costs, signaling renewed inflationary pressures.
The U.S. Census Bureau announced the seasonally adjusted quarterly after-tax profits for manufacturing industries statistics for the first quarter of 2022, and wholesale trade has seen a rise from 4Q 2021 to the first quarter of 2022.
U.S. producer prices rose drastically in July, marking the biggest monthly gain since June 2022, according to the latest government data.
The Bureau of Labor Statistics released its monthly Producer Price Index report on Aug. 14, showing that final demand increased 0.9% month-over-month during July 2025, following a flat June and a 0.3% increase in May. July’s figure was far above the 0.2% monthly increase forecasted by economists.
On an annual basis, July’s PPI rose 3.4%, up from 2.3% in June and 2.6% in May. The annual gain was the largest since February.
MDM’s 2Q25 MarketPulse Report (store link)
July’s increase was heavily impacted by prices for final demand services, which increased 1.1% month-over-month — the largest advance since jumping 1.3% in March 2022. This followed a 0.3% increase in June. Meanwhile, the broad-based monthly increase was attributable to margins for final demand goods, which rose 2.0%.
U.S. Producer Price Index Month-Over-Month
source: tradingeconomics.com
The PPI tracks average price shifts at the wholesale level before they reach customers
In the Store: MDM’s U.S. MRO Market Trends Report
Core PPI — which excludes volatile food and energy categories — increased 0.6% in July month-over-month, the biggest gain since March 2022. This followed an unchanged June and a 0.1% increase in May. Core PPI for the 12 months that ended in July rose 2.8%, following June’s 2.6% increase.
U.S. Producer Price Index Year-Over-Year
source: tradingeconomics.com
The Bureau of Labor Statistics released its monthly Consumer Price Index summary on Aug. 12, which increased a 0.2% for its all-items index month-over-month, following a 0.3% gain in June and a 0.1% increase in May. The CPI all-items index increased 2.8% for the 12 months that ended in July.
Core consumer inflation rose 0.3% month-over-month — the largest gain since January’s 0.4% — and on a year-over-year basis, July’s core inflation rose 2.7%.
