How long could inflation last in the US?
4:02
(CNN) -
The Producer Price Index, a key measure of inflation, slowed in the United States during July after rising the previous month, according to data released Thursday by the Bureau of Labor Statistics (BLS, for its acronym). in English).
The news offers a ray of light that the painful inflation suffered by Americans could moderate in the coming months.
Although the number is still high.
Inflation gives the US a break in July: consumer prices slow with an increase of 8.5% year-on-year
This index, which evaluates the prices paid to producers for their goods and services, was 9.8% higher in July compared to the previous year.
This represents a slowdown compared to the strong year-on-year increase of 11.3% that was registered in June.
On a monthly basis, wholesale prices fell 0.5% and marked a decrease from the revised monthly increase of 1% in June.
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These results are largely attributed to falling record energy prices and the lower prices are often seen as a sign of progress in fighting inflation.
However, economists warn that another double-digit inflation report sends a strong signal that the economy is not yet out of the woods.
Producer prices are generally more volatile than consumer prices, as cost fluctuations are often not fully passed on to buyers.
But these expenses are partially reflected in what Americans pay for goods and services.
In that sense, a high percentage is generally considered a harbinger of the increase in the prices of consumer goods.
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This Producer Price Index data comes a day after July's highly anticipated Consumer Price Index showed that the costs Americans pay for everything from food to electricity rose 8.5% during last year, a slower pace than the 9.1% increase in June.
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