The producer price index — which measures inflation before it hits consumers — was up 0.9% last month from June and 3.3% from a year earlier, much higher than expected.

Prices were 2.7% higher last month compared with a year ago, and core inflation went up at a higher pace than what was seen in June

CPI was projected to increase 0.2% in July and 2.8% for a year ago on headline, and 0.3% and 3% on core