August US PPI inflation hits 5.4% and lifts Fed rate hike odds

August PPI inflation rose to 5.4%, above expectations of 5.3%. Core PPI increased to 4.6%, the highest since June 2026. July headline and core PPI were revised higher. Rate hike probabilities increased on the release.

Potential market impact: higher rate expectations typically pressure risk assets including cryptocurrencies and support the dollar and bond yields.