US Producer Prices Unexpectedly Fall

2025-09-10 12:35 By Joana Taborda 1 min. read

Producer prices in the US unexpectedly fell 0.1% mom in August 2025, following a downwardly revised 0.7% rise in July and well below forecasts of a 0.3% increase.

It is the first decline in producer prices in four months, with cost for services falling 0.2%, the largest drop since April, mainly due to a 3.9% decline in margins for machinery and vehicle wholesaling.

Cost for professional and commercial equipment wholesaling, chemicals, furniture retailing, food and alcohol retailing, and data processing also moved lower.

Meanwhile, prices for goods were up 0.1%, a fourth straight month of increases, led by a 2.3% jump in tobacco products.

The indexes for beef and veal; processed poultry; printed circuit assemblies; and electric power also rose.

Year-on-year, producer prices rose 2.6%, below a downwardly revised 3.1% rate in July and forecasts of 3.3%.

Core producer prices also declined 0.1%, below forecasts of a 0.3% rise and the annual core rate fell more than expected to 2.8%.



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