NEW YORK (CNN/Money) - Wholesale prices rose slightly in July, the government said Friday, with the figure less than Wall Street expectations.
The producer price index, which measures prices paid by businesses, was up 0.1 percent in the month, after a 0.3 percent decline in June. Economists surveyed by Briefing.com forecast a 0.2 percent increase in July.
The so-called "core-PPI," which measures wholesale prices excluding the often volatile food and energy prices, rose 0.1 percent in June, compared to a 0.2 percent rise in June. That was in line with economists' consensus forecast from Briefing.com.
The core-PPI number was the smallest increase since February, which saw a 0.1 percent decrease excluding food and energy. The core-PPI is closely watched as a indication of fundamental inflationary pressures in the economy.
Bond prices rose after the report, and yields, which move in the opposite direction, fell. The Federal Reserve has been raising interest rates as a way to combat inflationary pressures and the report helped raise expectations that the Fed may pause on its policy of measured increases when it next meets Sept. 21.
Energy prices posted a 2.3 percent rise in July, the largest jump in that measure, but that was offset by a 1.6 percent drop in food prices, the sharpest decline in more than a year.
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