The producer price index for July suggests companies may be feeling the sting of inflation and consumers could be next.

The Labor Department’s consumer price index for July showed that the annual pace of inflation remained at 2.7 percent from July 2024. That’s the same as the annual rise reported in June and above April’s post-pandemic low of 2.3 percent, though it was just under economists’ expectations.

Gas prices plummeted last year and that's kept inflation lower than expected but a different number, core inflation, which excludes gas and groceries rose 3% and economists say it's increasing sharply.