July’s PPI surged 0.9% month-over-month, far above the 0.2% forecast. Core PPI also jumped 0.6%, the largest rise since March 2022. This suggests businesses, squeezed by tariffs and higher import costs, will soon pass more expenses to consumers, reversing recent mild CPI trends. Despite market hopes for a September rate cut, the data confirms inflation remains persistently above the Fed’s 2% target, complicating its next move.