Wholesale price inflation slows last month as gas, food costs fall

WASHINGTON (AP) — Wholesale inflation dropped last month as gas prices reversed some of their Iran war spike and other costs also cooled, a sign that consumer inflation could grind lower in the months ahead.

The Labor Department’s producer price index — which captures inflation before it reaches consumers — rose 4.7% in July from a year ago, down from a much larger 5.5% increase in June. On a monthly basis, wholesale prices were unchanged from June to July, after they ticked down 0.1% the previous month.

The figures follows the government’s consumer price inflation report, released Wednesday , which also showed a modest cooling last month. Still, consumer prices have risen faster than wages for the past four months, worsening many Americans' finances. And gas prices rose in late July and early August, threatening to push inflation back up when August figures are reported next month.