The producer price index, or PPI, surged last month, far outpacing economists' forecasts and suggesting that President Trump's tariffs are starting to significantly drive up the cost of imported goods.

Wholesale inflation rose 0.9% in July from the prior month, the Labor Department said Thursday, outstripping economists' expectations for a 0.2% increase. The jump marks the largest in more than three years, since June 2022.

The PPI, which measures price changes before they reach consumers, suggests cost hikes are on the way for shoppers, economists said.

So far in 2025, consumer prices have been slow to rise despite economists' warnings that Mr. Trump's wide-ranging tariff agenda would hike costs for both U.S. businesses and consumers. That's partly because some importers took ste

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