Wholesale prices data released Thursday complicates the picture for an anticipated interest-rate cut at the Federal Reserve’s meeting in September by nudging the central bank’s inflation gauge in the wrong direction. The highest tariffs in almost a century haven’t caused inflation to surge—one theory for the limited impact is gaining traction. And Americans are stuck in place. The paralysis has left many people in houses that are too small, in jobs they don’t love or shackled with ‘golden handcuffs.’

Wholesale prices—the cost of goods and services purchased directly from producers—rose at the sharpest monthly rate in three years, raising fresh alarm that tariffs are taking root in the economy and pushing up inflation.

Prices charged by U.S. manufacturers and service providers rose by 0.9% month over month in July, the Bureau of Labor Statistics said Thursday, the biggest month-over-month increase since March 2022.

The highest tariffs in almost a century haven’t caused inflation to surge. The phenomenon has puzzled economists, some of whom suspect that companies have so far simply been reluctant to pass along the extra costs to their customers. But another argument for the limited impact is gaining traction: that tariffs being paid by importers are lower than advertised.

8:30 a.m.: Import & Export Price Indexes
10 a.m.: University of Michigan Survey of Consumers - preliminary

10 a.m.: NAHB Housing Market Index

The dollar rises after data showed wholesale inflation accelerated more than expected in July. The producer price index rose 0.9% month-on-month in July, above the 0.2% rise forecast by economists in a WSJ survey. It follows flat growth in June. Separate data showed U.S. initial jobless claims fell 3,000 to 224,000 last week, below the 229,000 expected. The PPI data suggest inflationary pressures remain in play, MH Markets analyst Mohammed Taha says in a note. The jobless claims data provide further evidence of a resilient labor market. This could prompt the Federal Reserve to maintain a cautious stance towards cutting interest rates, he says. — Renae Dyer

• Canadian Prime Minister Mark Carney said officials will work on a support package for canola growers while trying to resolve the trade row with their Chinese counterparts over the oilseed.
• Statistics Canada said data tables linked to Friday’s release of manufacturing shipments for June were inadvertently published due to what it calls a “process error.”
• The U.K. economy slowed in the three months through June but continued to grow, proving resilient to a rise in U.S. tariffs that hit exports and to higher taxes on businesses that cooled hiring.
• Switzerland’s economic growth slowed sharply in the second quarter, as strong frontrunning of U.S. tariffs in the early part of the year unwound.
• Fresh data on China’s economy pointed to a broad-based slowdown last month, adding to the pressure on Beijing to do more to rev up growth and consumer spending in the face of President Trump’s tariffs.
• Japan’s latest economic data has calmed recession fears, showing a fifth straight quarter of growth despite the impact of U.S. tariffs.

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ’s global team of reporters and editors. This newsletter was compiled by markets reporter Vicky Ge Huang in New York. Send your tips, suggestions and feedback to vicky.huang@wsj.com.