Producer prices in July rose faster than forecast across the board, giving investors and the Federal Reserve an inflation surprise just over a week out from Fed Chair Jay Powell's crucial Jackson Hole speech.

US producer price inflation bounced in July to its highest reading since 2022, data showed Thursday, with underlying signs that businesses are facing pressures from President Donald Trump’s tariffs.

The Producer Price Index saw its biggest monthly gain since June 2022, the Bureau of Labor Statistics said Thursday.

Domestic producers are “raising prices in line with the protection tariffs are providing them,” said a construction economist, a move that could further stoke inflation.

The surprise PPI reading, driven by the biggest monthly gain in core since 2022, further muddies the central bank's September decision to hold or cut rates in September.

U.S. wholesale inflation accelerated in July by the most in three years, boosted by a surge in margins that indicates companies are not absorbing