The Labor Department reported on Tuesday the U.S. producer-price index (PPI) rose 0.6 percent m-o-m in July, following an unrevised 0.2 percent m-o-m decline in June. This was the largest rise since October 2018.

For the 12 months through July, the PPI fell 0.4 percent, following an unrevised 0.8 percent drop in the previous month.

Economists had forecast the headline PPI would increase 0.3 percent m-o-m but fall 0.7 percent over the past 12 months.

According to the report, the July advance in the final demand index was led by a 0.5-percent m-o-m climb in prices for final demand services (the largest advance since April 2019). The index for final demand goods also moved higher, increasing 0.8 percent m-o-m (the third consecutive advance).

Excluding volatile prices for food and energy, the PPI rose 0.5 percent m-o-m and 0.3 percent over 12 months. Economists had forecast a 0.1 percent m-o-m uptick and flat y-o-y.