The Fed targets 2% at PCE (consumer) whereas this is PPI (wholesale/producer). Not always 1 to 1 but in general you expect PPI to be a leading indicator for what's coming for PCE. Part of the attention is for sure people being vigilant to see the earliest effects of the tariffs and... here they are pretty unambiguously.

The more significant concern it seems to me is the rate of increase. Nearly a full percentage point in a month seems like a lot, but I'm no expert.

The question is, is that full percentage point in a month a trend, or is it a fluctuation? You can't tell much by one month in isolation, or even one month compared to the previous month.

It's concerning. It's hard to say much more than that yet.

I think you mostly nailed it. I suspected this was going to happen to with this recent filing season having most companies recognize tariffs and already state they are mostly getting passed on.