So Much For ‘Rate Cuts’

From martket Ticker

The Producer Price Index for final demand rose 0.9 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in June and moved up 0.4 percent in May. (See table A.) On an unadjusted basis, the index for final demand advanced 3.3 percent for the 12 months ended in July, the largest 12-month increase since rising 3.4 percent in February 2025.

Remember, PPI is what producers pay and inevitably filters into CPI in a few months.

Within final demand, more than three-quarters of the broad-based advance in July can be traced to the index for final demand services, which rose 1.1 percent.

Final demand services is mostly-insensitive to tariffs since you import things, not services.