RE: LeoThread 2025-08-21 18:48

1/ According to the Bureau of Labor Statistics, consumer prices (CPI) rose 2.7% over the year and 0.2% in July, aligning with expectations and suggesting stable inflation for households.

In contrast, producer prices (PPI) saw a year-over-year increase of 3.3%, with a substantial 0.9% rise in July, exceeding predictions of 0.3% to 0.4%.

This difference highlights how CPI and PPI measure the economic landscape: CPI focuses on what consumers pay, while PPI tracks what producers and wholesalers receive for goods and services.

CPI captures consumer costs through a basket of typical household expenditures, while PPI reflects production costs, potentially signaling future consumer cost increases.

However, companies can choose to absorb higher costs rather than passing them to consumers, based on factors like pricing power, demand, and competitive environment.

Additionally, PPI data often undergo revisions as more information comes in, whereas CPI data are less frequently changed post-release due to more direct data collection from businesses and service providers.

While consumer inflation appears stable, the notable rise in producer prices could indicate future increases in consumer inflation.