Breaking News: US core PPI rises by 2.8% Y/Y in August vs 3.5% expected

[Ben Graham]

• US Producer Price Index (PPI) ex. Food & Energy August (Core) (YoY): +2.8% vs +3.5% expected, below consensus by -0.7%
• US Producer Price Index (PPI) ex. Food & Energy August (Core) (MoM): -0.1% vs +0.3% expected, below consensus by -0.4%
• US Producer Price Index (PPI) August (YoY): 2.6% vs +3.3% expected, below consensus by -0.7%
• US Producer Price Index (PPI) August (MoM): -0.1% vs +0.3% expected, below consensus by -0.4%

US Producer Price Index Report (August 2025):

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted, U.S. BLS 10/09/2025

Breaking: US core PPI rises by 2.8% YoY in August, down 0.1% MoM. The report comes in lower than expectations, with markets predicting a higher rate of 3.5% YoY, and a monthly gain of +0.3%.

Key takeaway: US producer-facing inflation is less sticky than once thought. Coming in lower than expectations across the board, today’s result will further vindicate a choice to cut rates in the upcoming rate decision.

"The Producer Price Index for final demand edged down 0.1 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.7 percent in July and 0.1 percent in June. (See table A.) On an unadjusted basis, the index for final demand rose 2.6 percent for the 12 months ended in August.

Prices for final demand less foods, energy, and trade services rose 0.3 percent in August, the fourth consecutive increase. For the 12 months ended in August, the index for final demand less foods, energy, and trade services moved up 2.8 percent, the largest 12-month advance since climbing 3.5 percent in March 2025."

Producer Price Index (PPI) August, U.S. Bureau of Labor Statistics

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