The Labor Department said on Friday that the producer price index for final demand rose 0.3 percent last month.
June data was revised downward to show that the producer price index was unchanged, instead of rising 0.1 percent previously.
In the 12 months through July, the producer price index rose 0.8 percent after rising 0.2 percent in June, supported by a smaller baseline effect last year.
Economists polled by Reuters had expected the producer price index to rise 0.2 percent month-on-month and increase 0.7 percent year-on-year.
The cost of wholesale services jumped 0.5 percent last month, the biggest increase since last August, after falling 0.1 percent in June.
The narrowest measure of the producer price index, which excludes food, energy and business services, rose 0.2%, after rising 0.1% in June.
In the 12 months through July, the so-called core producer price index rose 2.7 percent, matching the June rise.
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