U.S. wholesale inflation accelerated sharply in July, with the Producer Price Index for final demand rising 0.9% from the prior month, the largest advance in three years, the Labor Department reported. The jump follows an unchanged reading in June and far outpaced economists’ 0.2% consensus estimate. Price pressures were broad-based. Services costs climbed 1.1%—the strongest since March 2022—driven by a 2.0% surge in trade margins and a 5.8% jump in portfolio-management fees. Goods prices increased 0.7%, lifted by a 1.4% rise in food, including a 38.9% spike in fresh and dry vegetables, while meat and egg prices also moved higher. On an annual basis, producer prices were up 3.3%, accelerating from 2.4% in June. Economists said the data suggest firms are increasingly passing higher costs—some stemming from the 145% tariff imposed on Chinese imports in April—through the supply chain, raising the prospect of firmer consumer inflation. The unexpectedly strong reading complicates expectations for a Federal Reserve rate cut at its mid-September meeting. Treasury yields rose and equity indexes opened lower after the release. Separately, the Bureau of Labor Statistics said it has discontinued about 350 PPI and related indexes because of budget constraints, underscoring concerns over the quality of U.S. economic data.