A July spike in the Producer Price Index is raising doubts about a Fed rate cut, as rising inflation complicates the central bank’s next move.

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.