• Financial Survival Network
  • Posts
  • Companies See “Sticky” Inflation in July in Services, as They Pass On Surging Input Costs, Including Higher Wages

Companies See “Sticky” Inflation in July in Services, as They Pass On Surging Input Costs, Including Higher Wages

July 25, 2023

by Wolf Richter Wolf Street

Inflation in goods has abated, but it remains hot in services: US companies.

The message about “sticky” inflation in services, as seen from the companies’ point of view, was the most interesting element in the S&P Global Flash US Composite PMI for July, released today. It was another item on a long list of items that document that at inflation in services isn’t just vanishing.

From the companies’ point of view, inflation exists in two forms: their input costs, which include wages; and charge inflation, the prices they can charge their customers. And for services companies both are hot.