Here's what new data from the producer price index says about where inflation is headed, according to economists.

Stocks moved lower on Thursday as investors reacted to the producer-price index showing a 0.9% bump for the month of July. According to the PPI report, three-quarters of this increase can be traced to the growing cost for services.

The Producer Price Index surged in July, in part due to tariffs. Consumers could face sharp inflation again toward the end of the year.

The Labor Department reported Thursday that the producer price index (PPI)—a measure of wholesale inflation before it hits consumers—rose 0.9% from June to July, the biggest jump since 2021. Compared with a year earlier, wholesale prices were up 3.3%.

Leading cryptocurrencies dived on Thursday after hotter-than-expected wholesale inflation tempered risk appetite. Cryptocurrency Gains +/- Price (Recorded at 9:30 p.m. ET) Bitcoin (CRYPTO: BTC) -4.09% $118,

The S&P 500 rally has a downside for inflation: surging portfolio management costs. Those costs surged 5.8% in July. Yet while portfolio costs are part of the core PCE price index, Fed Chairman Jerome Powell has said that policymakers are more concerned with market-based prices.

The producer-price index is volatile and often overshadowed by consumer price trends, but analysts were paying attention Thursday after a hot number. An earlier inflation report this week showed that

The monthly rise was the biggest since June 2022, and the annual increase the highest since February this year. Core PPI, which strips out volatile data points, rose by 3.7 percent over the year, its highest annual rise since April 2021. The PPI measures the output prices for domestic producers of goods and services before they reach consumers.

And while Deere reported higher-than-expected earnings of $4.75 per share and revenue of $10.4 billion, management now expects net income for the full fiscal year to be $5 billion at the midpoint – down from a previous forecast of $5.15 billion.