US inflation on the wholesale level picked up steam in July, with prices rising by the fastest monthly pace since June 2022, new data showed Thursday.

The latest Producer Price Index, which measures the average change in prices paid to producers, jumped 0.9% from June, lifting the annual rate to 3.3%, according to Bureau of Labor Statistics data.

Thursday’s readings far exceeded economists’ expectations for prices would rise by just 0.2% in July and 2.4% annually.

“Tariff churn is starting to burn and producers are starting to feel the inflation fire heat,” Chris Rupkey, chief economist at FwdBonds, wrote in commentary on Thursday. “It will only be a matter of time before producers pass their higher tariff-related costs on to the backs of inflation-weary consumers.”

PPI serves as a pot

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