The Bureau of Labor Statistics reported the producer price index jumped more than expected in July, spurring renewed concerns about inflation's economic impact.

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.

The Producer Price Index saw its biggest monthly gain since June 2022, the Bureau of Labor Statistics said Thursday.

Despite a gradual inflation uptrend, the data aligns with Fed projections, keeping a September rate cut in play as the most likely outcome at the next FOMC meeting.

Inflation, as measured by the producer price index, shot up to 3.3% for the year ending in July, the Bureau of Labor Statistics reported Thursday — the largest 12 month increase since February. On a month-to-month basis,

July’s Consumer Price Index report showed an acceleration in “core” prices that strip out volatile food and energy items.

The producer price index (PPI) for final demand rose 0.9% month-over-month after a flat reading in June. Core PPI, which excludes food and energy prices, rose 0.9% month-over-month after a flat reading in June. In July, the PPI for finished goods rose 0.5% month-over-month, up from 0.4% in June.

The annual inflation rate held steady in July as President Donald Trump's tariffs had less of an impact on some consumer prices than forecasters expected, but the details had a few devils as the key "core" inflation gauge accelerated.

The Bureau of Labor Statistics reported the July consumer price index which showed CPI inflation continued to rise as tariffs push prices higher for U.S. businesses and consumers.

Japan's core inflation rate in July likely slowed from the previous month but remained above the Bank of Japan's 2% target, a Reuters poll showed, adding to pressure on the central bank to raise interest rates.