Producer prices in July rose faster than forecast across the board, giving investors and the Federal Reserve an inflation surprise just over a week out from Fed Chair Jay Powell's crucial Jackson Hole speech.

US wholesale inflation accelerated in July by the most in three years, suggesting companies are passing along higher import costs related to tariffs.

In late July Fed Chairman Jerome Powell and the majority of the policy-making Federal Open Market Committee voted to maintain the “wait-and-see” approach to interest rate cuts. The FOMC held the benchmark Federal Funds Rate to a range of 4.25% to 4.5% to monitor the potential impact of tariffs into the U.S. supply chain.

The Producer Price Index (PPI) for final demand rose 0.9% in July, marking its largest monthly increase since early 2022. The annual PPI increase r

Excluding volatile food and energy prices, so-called core producer prices rose 0.9% from June, biggest month-over-month jump since March 2022. Compared with a year ago, core wholesale prices rose 3.7% after posting a 2.6% year-over-year jump in June.

U.S. producer prices increased by the most in three years in July amid a surge in the costs of goods and services, suggesting a broad pickup in inflation was imminent, posing a dilemma for the Federal Reserve.

U.S. producer prices increased more than expected in July amid a surge in the costs of services and goods, suggesting a broader pickup in inflation in the months ahead. The producer price index for final demand jumped 0.

The Labor Department reported June 12 that its producer price index rose 2.6% in May. Producer prices rose 0.1% from April to May after dropping 0.2% the month before.

The producer price index, or PPI, surged last month, far outpacing economists' forecasts and suggesting that President Trump's tariffs are starting to significantly drive up the cost of imported goods.

Domestic producers are “raising prices in line with the protection tariffs are providing them,” said a construction economist, a move that could further stoke inflation.