The Dow Jones (DJIA) is set to open Thursday’s trading session in the red following an unexpected inflation report.
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July’s Producer Price Index (PPI), which tracks wholesale prices and inflation at the production level, increased 0.9% month-over-month, well above the estimate of a 0.2% jump. That marks the biggest monthly gain since June 2022.
On a yearly basis, PPI rose by 3.3%, also above the estimate for 2.5% and registering the largest increase since February.
Core PPI Above Estimates
Core PPI, which excludes volatile food and energy prices, increased 0.9% month-over-month and 3.7% year-over-year. Economists were expecting a monthly and yearly rise of 0.2% and 2.9%, respectively.
With core Consumer Price Index (CPI) coming in at 3.1% in July, above the estimate for 3.0%, it appears that President Trump’s tariffs are beginning to seep into economic data. That’s affected September’s rate cut odds as well, with the odds of a 50 bps reduction falling to 0% compared to 5.7% yesterday, according to CME’s FedWatch tool.
Track the PPI and other key events with TipRanks’ Economic Calendar.
