FX.co ★ US Core PPI Unexpectedly Drops

Core producer prices in the United States, excluding food and energy, experienced a decrease of 0.1% in August 2025 compared to the previous month. This decline contrasts with market expectations of a 0.3% rise, following a downwardly revised 0.7% increase in July. This marks only the third reduction in core producer prices since the pandemic's significant impact in the second quarter of 2020, indicating a potential easing in factory gate prices after a prolonged period of resistance. Prices for final demand services decreased by 0.2% from the prior month, offsetting the 0.7% increase observed in July, while the prices for final demand goods saw a marginal increase of 0.1% after a 0.6% rise in the previous month. On a year-over-year basis, core producer inflation softened to 2.8% from 3.4%.