#HotJulyPPI Hot July PPI – What happened and why it matters
In July, the Producer Price Index (PPI) – the increase in prices of goods and services at the wholesale level – was much higher than expected.
Big figures
Compared to last month (Month-to-Month): an increase of 0.9% compared to June – the largest jump since June 2022.
Compared to last year (Year-to-Year): an increase of 3.3% compared to July 2024 – the fastest since February 2025.
These figures were significantly higher than economists' estimates, thus surprising everyone.
Why is this important?
Indication of inflation – If companies are spending more to produce goods and services, they may pass that cost on to consumers. This could make everyday items more expensive.
Impact on interest rates – Central banks like the U.S. Federal Reserve may delay reducing interest rates to curb inflation.
Impact on the market –
The stock market initially remained calm but is now cautious.
Rapid movements in the bond market and currency market.
The crypto market is also watching this, as inflation and interest rates can affect crypto prices.
"Hot" July PPI – why was it called so?
Here, "hot" means that the figures came out significantly hotter (higher) than expected – just as the weather can be warmer than usual, prices have become hot here.
Summary
Hot July PPI shows that inflationary pressure is still persistent.
If prices continue to rise like this, borrowing will remain expensive and market volatility may persist.
Impact of Hot July PPI on Binance
What Binance said:
In Binance's official Square post, it was mentioned that the annual PPI rose by 3.3% and monthly by 0.9%—both above market expectations Binance
They describe this volatility as a potential opportunity for "fractional entries" or quick trade moves in crypto markets.
