Wholesale Inflation In August Just Smashed Economists' Expectations

Posted • September 10, 2025: President Trump celebrated wholesale inflation declining in August after the Bureau of Labor Statistics reported the Producer Price Index fell .1 percent last month. Economists predicted a .3 percent rise. https://truthsocial.com/@realDonaldTrump/posts/115180154793561569 —— The Labor Department reported Wednesday that its producer price index — which captures inflation in the supply chain before it hits consumers — showed that wholesale inflation decelerated in August after advancing 0.7% in July. Wholesale services prices fell 0.2% from July on smaller profit margins at retailers and wholesalers, which might be a sign that those companies are absorbing the cost of President Donald Trump’s sweeping taxes — tariffs — on imports. […] Excluding volatile food and energy prices, so-called core producer prices also fell 0.1% from July and were up 2.8% from a year earlier.

The numbers were lower than economists had forecast. […] Wholesale prices can offer an early look at where consumer inflation might be headed. Economists also watch it because some of its components, notably measures of health care and financial services, flow into the Federal Reserve’s preferred inflation gauge — the personal consumption expenditures, or PCE, price index. The drop in producer prices makes it even more likely that the Fed will cut its benchmark interest rate next week for the first time this year. —— “The latest PPI report shows there is no inflation — wholesale prices fell and smashed economists’ expectations," said Press Secretary Karoline Leavitt. "President Trump has defeated Joe Biden’s inflation crisis while successfully implementing powerful tariffs, which haven’t hiked prices like the so-called ‘experts’ claimed. This is yet another reason for Jerome ‘Too Late’ Powell to cut the rates immediately to make everyday life more affordable for Americans.” (…)

• More at: Townhall - Wholesale Inflation in August Just Smashed Economists' Expectations
https://townhall.com/tipsheet/leahbarkoukis/2025/09/10/ppi-n2663042