Editor’s Note: This article has been updated to include additional context.
U.S. producer prices exploded in July, signaling that President Donald Trump‘s tariff hikes are feeding through the supply chain before hitting consumer store shelves.
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The Producer Price Index (PPI) jumped 0.9% month-over-month, up from June’s flat reading and well above the 0.2% increase economists had forecast. The outcome marks the largest monthly increase since June 2022.
On an annual basis, headline PPI soared from 2.4% in June to 3.3% in July, sharply outpacing expectations of 2.5%.
Every major component of the PPI basket rose in July, led …