Overview

• Producer prices for final demand rose 0.9% in July—the biggest monthly gain since June 2022—lifting annual PPI to 3.3% on strength in services, trade margins and portfolio fees
• September rate-cut odds priced by CME FedWatch fell from near-100% to the mid-90% range after the hotter-than-expected PPI report
• U.S. equities pulled back from recent highs, two-year Treasury yields climbed and Bitcoin slid from above $124,000 to below $119,000 on the data
• Thursday’s PPI was the first report after the BLS eliminated roughly 350 subindexes and follows leadership turnover and heightened scrutiny over data collection practices
• Market attention now shifts to upcoming CPI and PCE readings and Fed commentary at Jackson Hole for clues on whether wholesale cost pressures will filter into consumer prices