Inflation "explodes"! The U.S. July PPI increased by 3.3% year-on-year, the largest increase in three years, with core PPI rising by 3.7% year-on-year

The U.S. Bureau of Labor Statistics released data on Thursday showing that the U.S. July PPI year-on-year was 3.3%, expected 2.5%, previous value 2.3%. The U.S. July PPI month-on-month was 0.9%, expected 0.2%, previous value 0%. The U.S. July core PPI year-on-year was 3.7%, expected 3%, previous value 2.6%. The U.S. July core PPI month-on-month was 0.9%, expected 0.2%, previous value 0%.

After the data was released, the three major U.S. stock index futures quickly fell, with Nasdaq futures down 0.36% for the day, S&P 500 index futures down 0.35%, and Dow futures down 0.29%. The U.S. dollar index rose sharply in the short term, up 0.21% for the day. Spot gold slightly declined, down 0.32% for the day.

Traders reduced bets on the Federal Reserve cutting interest rates in September.

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