US Producer Inflation Forecast to Moderate

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US producer prices are expected to rise 0.3% month-on-month in August 2025, a sharp slowdown from the 0.9% gain in July, which marked the strongest increase since June 2022. Core PPI, excluding food and energy, is also projected to advance 0.3%, following a 0.9% surge in the prior month. On a yearly basis, headline producer inflation is forecast to hold steady at 3.3%, remaining near the highest levels since February. Core producer inflation, however, is expected to ease slightly to 3.5% from 3.7%. Investors will be watching for signs of tariff-related price pressures, though the data are likely to suggest such effects remain limited for now.

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