Wholesale prices fall sharply, signaling easing inflation pressures
Posted on Sep 11, 2025 / USA
The latest Producer Price Index (PPI) numbers caught economists off guard: wholesale inflation dropped noticeably in August. Core sectors like energy, trade services, and final demand services saw falling prices month over month, something many didn’t expect so soon. The Trump administration is using this data to argue its tariffs and policies aren’t hurting consumers like critics feared. Meanwhile, small business optimism rose to levels not seen since earlier this year. All this has pushed expectations that the Fed might cut rates earlier than predicted.
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