Stocks React to Wholesale Inflation Surprise

How Inflation and Economic Data Affected the Stock Market

As a market participant, you had to weigh the impact of an unexpectedly high reading on wholesale-price inflation on Friday. The day’s session was dominated by downbeat economic data, particularly the Producer Price Index (PPI) which measures wholesale prices. PPI rose 0.3% in July, the highest reading since January and higher than the expected 0.2% increase. Meanwhile, the core PPI, which excludes volatile food, energy, and trade services prices, also rose 0.2% in July, signaling future inflation.