This Week’s Key Inflation Reports Likely to Show Continued Price Increases

This week, key U.S. inflation reports are expected to show continued price increases in August, though not enough to prevent the Federal Reserve from potentially cutting interest rates next week. The Bureau of Labor Statistics will release the producer price index (PPI) on Wednesday, followed by the consumer price index (CPI) on Thursday. Monthly inflation is projected at 0.3%, pushing the annual headline CPI to 2.9%, while core CPI may remain steady at 3.1%. Increases are largely driven by tariff-sensitive goods, not services, allowing the Fed to focus on a weakening jobs market. Rising prices from tariffs could affect autos, furniture, and clothing.