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

The producer price index for July suggests companies may be feeling the sting of inflation and consumers could be next.

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.

U.S. producer prices rose sharply in July, driven by broad increases in service and goods costs, signaling renewed inflationary pressures.

The surprise PPI reading, driven by the biggest monthly gain in core since 2022, further muddies the central bank's September decision to hold or cut rates in September.

US stock futures hovered around the flatline as Wall Street awaited another pulse check on inflation after Tuesday's tepid figures sent rate-cut bets and markets soaring.

The consumer price index, a main gauge of inflation, climbed 0.4 percent in July compared with the previous month, reversing a 0.1 percent drop in June and exceeding the average seasonal pace of 0.3 percent, data from the National Bureau of Statistics showed.

U.S. import prices rebounded in July, boosted by higher costs for consumer goods, the latest indication that inflation was poised to pick up because of tariffs.