"We expect the July report to mark the peak of producer price inflation as supply pressures gradually unwind in the coming months and demand moderates from its blistering pace in the first half of the year," said Mahir Rasheed, U.S. He added, "However, stubborn pandemic disruptions will continue to hamper supply through year-end, keeping producer prices sticky and prompting the Fed to begin QE tapering in early 2022." On Wednesday, the Labor Department released a separate report showing U.S. consumer prices increased in line with economist estimates in the month of July.