The producer price index jumped 0.9% in July, compared with the Dow Jones estimate for a 0.2% gain. It was the biggest monthly increase since June 2022.
Excluding food and energy prices, the core PPI rose 0.9% against the forecast for 0.3%. Excluding food, energy and trade services, the index was up 0.6%, the biggest gain since March 2022.
Following the release, market-implied odds of a September cut decreased but only slightly, according to the CME Group's FedWatch tool.