#HotJulyPPI

The Producer Price Index (PPI) in the U.S. rose 0.9% in July, exceeding expectations. This significant increase may impact the Federal Reserve's decisions on interest rates. Here are some important details about the July PPI ¹:

- *PPI increase*: 0.9% in July, after stability in June

- *Services*: increase of 1.1%, accounting for more than three-quarters of the overall advance

- *Goods*: increase of 0.7%

- *Annual inflation*: 3.3%, the highest increase in 12 months since February 2025

The rise in PPI may complicate the Fed's plans to lower interest rates, as inflation is still above the 2% target. Markets are predicting a 90% chance of an interest rate cut in September, but the chances of a second cut in October have decreased.