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PPI July: 0.9% Inflation Surge, Tariffs, Fed Rate Cut Impact Key Takeaways Record Jump : U.S. Producer Price Index spiked 0.9% in July 2025 , biggest monthly surge since June 2022 Fed Impact : Rate cut expectations dropped from 50 to 25 basis points for September Tariff Costs : Businesses passed import tariffs to wholesale prices, services margins up 2% Consumer Warning : Goldman Sachs predicts consumers will absorb 67% of tariff costs Market Reaction : Treasury yields climbed, stocks dipped slightly Global Contrast : Germany and India showed cooling wholesale inflation The Numbers Don't Lie , July's Inflation Bomb The Producer Price Index exploded 0.9% in July. One month. Nearly a full percentage point. The last time we saw numbers this ugly was June 2022 , back when inflation was eating everything alive. Year-over-year PPI inflation hit 3.3%, blowing past the Federal Reserve's 2% target like a freight train through a paper wall. Economists had been whispering about coolin...