In a surprising twist, US wholesale prices soared by 3.3% in July, driven largely by the repercussions of Trump tariffs, which are beginning to have a significant effect on the economy. Core producer prices have hit a three-year high, indicating persistent inflationary pressures. The latest PPI report has sent shockwaves through financial markets, causing stocks to dip and Treasury yields to rise. Despite some economists expressing a positive outlook, the data has led to renewed concerns about consumer costs and potential rate cuts by the Federal Reserve. As businesses start to pass on the costs of tariffs to consumers, inflation remains a key focus, with consumer prices rising 2.7% annually in July. Analysts warn that the worst effects of tariff-driven inflation could still be on the horizon.