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

Dean Smith, chief strategist and portfolio manager at FolioBeyond, says Thursday's (August 14) stronger than expected producer price index is a sign that tariffs are starting to boost prices.

The cost of wholesale goods and services — where rising inflation tends to show up first — in July posted the biggest increase in three years, possibly heralding a sizable acceleration in price increases tied to higher U.

Earlier this week, falling bond yields and growing expectations for aggressive Federal Reserve interest-rate cuts in the months ahead helped spark a rotation away from what had been working in the U.S.

U.S. stock index futures slipped on Thursday after hotter-than-expected producer prices data contrasted with recent tame consumer prices data that had boosted bets of Federal Reserve interest rate cuts this year.

US stocks fell on Thursday as wholesale inflation accelerated by the most in three years, halting a risk-on rally that helped set fresh record highs.

Treasuries moved lower after a reading of inflation at the production level came in stronger than expected, prompting traders to pare bets the Federal Reserve will cut interest rates next month.

July's PPI inflation report heightened worries over tariff-fueled consumer inflation and raised questions about the Fed's interest rate cut plans.

Gold extended gains to a third straight session on Thursday, supported by rising expectations of an interest rate cut by the U.S. Federal Reserve in September following tame inflation data, which also weighed on the dollar.