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July 2025 PPI: A Structural Cost Surge Deepens Burden on Black Businesses

 
July 2025 Producer Price Index Summary Analysis

  • The Producer Price Index (PPI) for Final Demand jumped 0.9% in July, marking the largest single-month increase since mid-2022.

  • On a year-over-year basis, PPI rose 3.3%, indicating sustained producer-side inflation.

  • Core PPI (excluding food, energy, and trade services) mirrored this climb with a +0.6% monthly and +2.8% annual gain—the steepest in over three years.

  • The spike was driven by final demand services (+1.1%)—along with price pressures in machinery wholesaling (+3.8%), transportation, and accommodations.

  • Final demand goods increased by 0.7%, largely due to surging food prices—particularly fresh and dry vegetables (+38.9%), meats, diesel, jet fuel, and eggs.

Structural Cost Shift: What It Means for Minority-Owned Businesses

A structural cost shift occurs when inflation disproportionately rises in essential sectors disproportionately impacting marginalized groups—while headline inflation may appear moderate. For Black and minority-owned businesses, this means sustained economic pressure in high-dependency sectors.

Bottom Line

July 2025 PPI reveals inflation accelerating at the production level—especially in services disproportionately used by Black and minority businesses. Despite a broader narrative of economic calm, the structural cost shift continues, grinding down profits and resilience. Without transparency and targeted policy responses and with tariffs projected to increase, this inflation will deepen existing wealth and business ownership gaps. For more detailed analysis, email info@creativeinvest.com.

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