In July 2025, the U.S. Producer Price Index (PPI) jumped 0.9% from the previous month — far above the 0.2% increase economists expected. This is the biggest monthly rise in producer prices since mid-2022.
Year-over-year, PPI climbed 3.3%, up from 2.4% in June. This shows inflation pressures are picking up again.
Key drivers:
Services costs rose 1.1%, led by machinery and equipment wholesale, portfolio management, hospitality, and freight.
Goods prices rose 0.7%, boosted by big jumps in vegetables, meat, and eggs.
Why it matters:
Higher producer costs could push consumer prices higher in the months ahead.
The Federal Reserve may delay expected interest rate cuts due to renewed inflation concerns.
TL;DR:
+0.9% monthly PPI — hottest since mid-2022.
+3.3% yearly PPI — inflationary pressure rising.
Rate cut expectations may cool.