U.S. Producer Price Index (PPI) data showed a significant surge in July, exceeding expectations and signaling continued inflationary pressure. The index rose 0.9% month-over-month, significantly higher than the expected 0.2%, and increased 3.3% year-over-year compared to the anticipated 2.5%. This outsized performance marks a notable reversal from June’s meager monthly rise of 0.2% and a jump of only 2.4% year-over-year. Core PPI, which excludes food and energy, also saw a strong increase of 0.9%, highlighting the persistent inflationary pressures impacting wholesale markets. 📈 This alarming trend has triggered fears about the possibility of extended interest rate hikes by the Federal Reserve to combat this inflation, despite previous expectations of a near-bank rate cut in September.