Businesses are charging each other higher prices, a warning sign for consumers

Main Idea: Businesses are raising the prices they charge each other as Trump’s tariffs push costs higher, raising worries that consumers and the Federal Reserve will feel the impact next.

Key Points:

• New inflation data showed wholesale prices jumped in July, led by a big rise in trade services.
• The report suggests companies are trying to protect profit margins instead of absorbing tariff costs.
• Analysts say consumers may soon see more of these higher costs, even though recent consumer inflation was milder.
• The hotter inflation reading also made investors less sure the Federal Reserve will cut interest rates soon.