Core Insights - The Producer Price Index (PPI) in the U.S. rose significantly in July, exceeding market expectations and indicating renewed inflationary pressures in the upstream industrial chain [1] - The PPI increased by 0.9% month-on-month in July, a substantial rise compared to June's zero growth and the market forecast of 0.2%, marking the largest increase since June 2022 [1] - Year-on-year, the PPI rose by 3.3% in July, up from 2.3% in June and surpassing the expected 2.6%, representing the highest level since February of this year [1] Industry Analysis - Over three-quarters of the PPI increase in July can be attributed to the service sector, which saw a month-on-month price index increase of 1.1%, the largest since March 2022 [1] - The core PPI, excluding volatile food and energy prices, also rose by 0.9% month-on-month in July, significantly higher than June's zero growth, with a year-on-year increase of 3.7%, up from 2.6% in the previous month [1] Market Reaction - Following the release of the PPI data, U.S. stock markets weakened, while the dollar and long-term U.S. Treasury yields increased [1] - Analysts suggest that the data indicates rising cost pressures for U.S. businesses, which may lead to further cost pass-through to downstream consumers, reinforcing the Federal Reserve's cautious stance on interest rate cuts [1]

Core Insights - The June PPI data in the U.S. unexpectedly fell short of expectations, primarily due to a decline in service prices, indicating that businesses are absorbing some of the costs associated with increased import tariffs [1] - The Producer Price Index (PPI) remained flat month-on-month, and the core PPI also showed no change, both below market forecasts [1] - The impact of tariff increases has permeated various categories, including home goods, appliances, and leisure products, as indicated by the recently released CPI data [1] - Despite moderate inflation so far this year, many economists anticipate that inflation will gradually rise as more companies attempt to offset the increasing trade costs [1]