PPI August 2025: Prices have decreased unexpectedly 0.1 %

Wholesale prices decreased slightly in August, providing space for breathing for the federal reserve to agree to reduce the interest rate at its meeting this month, according to the work statistics report on Wednesday.

the Product price indexThat measures the costs of inputs through a wide range of goods and services, decreased by 0.1 % for this month, after an increase of 0.7 % in July and as much as Dow Jones estimated a 0.3 % increase. On the basis of 12 months, the main PPI has seen 2.6 % earning.

The basic product price index, which excludes food and volatile energy, may stop 0.1 % after it is expected to increase by 0.3 % as well. Except for food, energy and trade, the producers’ price index recorded 0.3 % and increased by 2.8 % from last year.

stock market Gainer After the release while the cabinet returns were a little negative.

This version comes a week before the time the Open Market Committee at the Central Bank issued its decision regarding the main borrowing rate overnight.

The futures market pricing includes a 100 % probability that the committee agrees to reduce the first interest since December 2024, although the issuance of the producers’ price index and consumer price reading on Thursday is closely monitored if policymakers will continue. The risk of reducing the slightly larger percentage points increased after the launch of the PPI to about 10 %, according to the CME’s Group Fedwatch Kel.

Service prices, a major scale for the full moon when assessing the monetary policy position, recorded a decrease of 0.2 %, which helps to increase sentence enlargement. 1.7 % sliding in commercial services prices was the primary motivation, with margins for machinery and vehicles with a 3.9 % trade trade.

The prices of goods increased, but only 0.1 % as basic prices increased by 0.3 %. While food costs for the final order increased by 0.1 %, the energy was 0.4 %.

“Safi, shock, the shock of inflation that was not the rise in missile markets because inflation barely has heartbeat at the product level that shows that the impact of customs tariffs does not enhance comprehensive price pressures yet,” said Chris Robki, chief economist at FWDBONDS. “There is almost nothing to stop the interest rate from coming now.”

Although inflation is still much higher than the goal of the Federal Reserve by 2 %, officials have expressed their confidence that reducing housing pressures and wages will lead to low prices, if only gradually.

The Federal Reserve resisted price discounts this year as officials monitor the influence of the president Donald TrumpTotal definitions against American imports. The definitions were not a permanent cause of inflation, but the broad nature of Trump’s moves has worried that this episode may be different.

Tobacco products, which are affected by definitions, jumped by 2.3 % in August. The costs of portfolio management, an important worker in the July increase, increased by 2 % after an increase of 5.8 % in the previous month.

For his part, Trump disturbed the federal reserve to reduce rates, and insisted that the customs tariff will not be inflated and that the economy needs to decrease in stimulating growth and financing costs for national debt swelling.

Fears were rising at the Federal Reserve on the image of employment, while inflation concerns had landed. BLS report on Tuesday indicates that the economy is almost created 1 million jobs lower Initially, the amount in the year preceding March 2025 raised concerns that the labor market is in trouble, even because Federal Reserve officials have consistently described the image as “solid”.

The Federal Reserve meeting next week will contain a decisions and update of the place where officials see the economy and interest rates in the future.