New Set of Inflation Numbers Sours Mood on Wall Street

Wall Street has its second set of inflation numbers to digest this week, and this time they have investors a little worried:

• New number: Wholesale inflation rose 0.9% in July, much higher than the 0.2% expected by economists in a poll, reports CNBC. Wholesale prices often translate to higher consumer prices down the road.
• One view: "It will only be a matter of time before producers pass their higher tariff-related costs onto the backs of inflation-weary consumers," wrote Christopher Rupkey, chief economist at fwdbonds, a financial markets research firm, per the AP.

• First report: The new data from the Labor Department comes just two days after the department reported that consumer prices rose a tamer-than-expected 2.7% in July. That buoyed the stock market, at least temporarily.
• The worry: Thursday's data suggesting that inflation is rising might make the Federal Reserve less likely to cut rates, or cut them as much as anticipated, next month, per the Wall Street Journal. Specifically, prospects of a half-point reduction are now seen as unlikely. Dow futures fell about 200 points after the report's release.