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

Producer prices increased by the most in three years in July, suggesting a broad pickup in inflation was imminent. "This is a kick in the teeth for anyone who thought that tariffs would not impact domestic prices in the United States economy,

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 producer price index for July suggests companies may be feeling the sting of inflation and consumers could be next.

U.S. producer prices rose sharply in July, driven by broad increases in service and goods costs, signaling renewed inflationary pressures.

US stock futures hovered around the flatline as Wall Street awaited another pulse check on inflation after Tuesday's tepid figures sent rate-cut bets and markets soaring.

The consumer price index, a main gauge of inflation, climbed 0.4 percent in July compared with the previous month, reversing a 0.1 percent drop in June and exceeding the average seasonal pace of 0.3 percent, data from the National Bureau of Statistics showed.