Goldman Sachs economists in a note estimated that consumers could soon bear up to 67% of tariff costs, up from 22%, thus escalating broader inflation risk. Before the Aug. 14 PPI report, markets were nearly unanimous in pricing a September Fed interest rate cut of up to 0.50%.

Thursday's hotter-than-expected PPI report hasn't moved the needle much when it comes to traders' expectations for a September Fed rate cut. Fed funds futures were pricing in more than 96% probability of a Fed rate cut in September,

The report issued Thursday, known as the producer-price index, is volatile, and many analysts look to it more as a gut check on the inner gears of commerce than as one of the economy’s primary vital signs.