Upcoming PPI and CPI Reports to Test Fed’s Rate Cut Resolve Amid Inflation Concerns

The financial markets brace for volatility as the August 2025 Producer Price Index (PPI) report is set for release on September 10 at 8:30 a.m. ET, followed by Consumer Price Index (CPI) data the next day. Analysts anticipate both metrics to exceed expectations, with year-over-year CPI projected at 2.9% and Core CPI holding stubbornly at 3.1%—well above the Fed's target.

Market observers warn of potential 'hot' inflation prints triggering a sell-off, where institutional players may offload positions to retail investors. The PPI forecast of 3.3% headline and 2.8% CORE suggests persistent wholesale price pressures, potentially reaching January's peak levels.

These reports will serve as a litmus test for how Trump-era tariffs influence monetary policy. Weak recent jobs data adds complexity, giving the Fed dual justification to prioritize employment stimulus over inflation containment.