Core Producer Prices Surge to 3-Year High in July, Sparking Inflation Concerns
Producer prices unexpectedly accelerated in July, with the Core PPI rising 0.6% month-over-month—the sharpest increase since March 2022. The annualized 3.3% jump defied forecasts of 0.2% growth, delivering a stagflationary warning ahead of Fed Chair Powell's Jackson Hole speech.
Equities dipped as the data contradicted tame CPI figures from earlier in the week. While consumer inflation held at 3.1% annually, the wholesale price surge suggests pipeline pressures that could reignite consumer inflation in coming quarters.
The divergence between PPI and CPI metrics leaves markets questioning the Fed's policy path. Cryptocurrencies may benefit as hedges against renewed inflationary pressures, particularly Bitcoin and ethereum as institutional safe havens.
