US wholesale inflation increased in June suggesting some price pressures remain high

Wholesale prices rose last month in the U.S. by 2.6% compared to a year earlier, which was a larger increase than expected and an indication that inflation pressures remain high.

That is the sharpest year-over-year increase since March of last year. It is happening as other indicators show that inflation has continued to ease, according to The Associated Press. 

Friday’s wholesale figures from the Labor Department follow the federal government’s report from Thursday that consumer inflation cooled in June for the third straight month.

"The big picture is that inflation pressures have moderated over the last two years but are still a bit stronger than the Fed would like them to be," said Bill Adams, chief economist at Comerica Bank. "With the economy operating in low gear, the Fed thinks the right time to start cutting interest rates is close. But they are planning to cut gradually."