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PPI inflation August 2025:

People shop for dairy products at a supermarket in Monterey Park, California on September 9, 2025.
Frederic J. Brown | Afp | Getty Images
Wholesale prices surprisingly fell slightly in August, providing breathing room for the Federal Reserve to approve an interest rate cut at its meeting this month, according to a Bureau of Labor Statistics report Wednesday.
The producer price index, which measures input costs across a broad array of goods and services, dropped 0.1% for the month, after a downwardly revised 0.7% increase in July and well off the Dow Jones estimate for a 0.3% rise. On a 12-month basis, the headline PPI saw a 2.6% gain.
The core PPI, which excludes volatile food and energy prices, also was off 0.1% after being expected to climb 0.3% as well. Excluding food, energy and trade, the PPI posted a 0.3% gain and was up 2.8% from a year ago.
Stock market futures gained after the release while Treasury yields were slightly negative.
The release comes a week ahead of when the central bank’s Federal Open Market Committee releases its decision on its key overnight borrowing rate.
Futures market pricing implies a 100% probability that the committee will approve its first rate cut since December 2024, though the PPI release and a consumer price reading Thursday are being watched closely for indications of whether policymakers will follow through. Odds for a larger half percentage point reduction increased slightly after the PPI release to about 10%, according to the CME Group’s FedWatch gauge.
Services prices, a key metric for the Fed when evaluating the stance of monetary policy, posted a 0.2% drop, helping drive wholesale inflation lower. A 1.7% slide in prices for trade services was the primary impetus, with margins for machinery and vehicle wholesaling tumbling 3.9%.
Goods prices did increase, but just 0.1% as core prices rose 0.3%. While final demand food costs were up 0.1%, energy was off 0.4%.
“Net, net, the inflation shock that was not is rocketing markets higher as inflation barely has a heartbeat at the producer level which shows the tariff effect is not boosting across-the-board price pressures yet,” said Chris Rupkey, chief economist at Fwdbonds. “There is almost nothing to stop an interest rate cut from coming now.”
Though inflation remains well above the Fed’s 2% target, officials have expressed confidence that easing housing and wage pressures will push prices lower, if only gradually.
The Fed has resisted rate cuts this year as officials monitor the impact from President Donald Trump‘s aggressive tariffs against U.S. imports. Tariffs historically have not been a lasting cause of inflation, but the broad-based nature of Trump’s moves have raised concern that this episode could be different.
Tobacco products, which are impacted by tariffs, jumped 2.3% in August. Portfolio management costs, a significant factor in the July increase, rose 2% after climbing 5.8% the prior month.
For his part, Trump has badgered the Fed to reduce rates, insisting that tariffs will not be inflationary and the economy needs lower rates both to spur growth and to cap financing costs for the swelling national debt.
Concerns have been rising at the Fed over the employment picture while inflation fears have abated. A BLS report Tuesday indicating that the economy created nearly 1 million fewer jobs than initially reported in the year preceding March 2025 raised worries that the labor market is in trouble even as Fed officials consistently have characterized the picture as “solid.”
The Fed meeting next week will feature both a rate decision and an update on where officials see the economy and interest rates headed in the future.
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Joe Biden’s re-election bid was ‘recklessness’

Former US Vice-President Kamala Harris has delivered her sharpest criticism yet of her former boss, calling Joe Biden’s decision to seek a second term “recklessness” in an excerpt from her forthcoming memoir.
“‘It’s Joe and Jill’s decision.’ We all said that, like a mantra, as if we’d all been hypnotized,” Harris writes in her book. “Was it grace, or was it recklessness? In retrospect, I think it was recklessness.”
In an extract for her book 107 Days, published by The Atlantic on Wednesday, Harris also describes moments where she felt sidelined or denied credit for her work by Biden’s team.
The BBC has contacted Biden’s office for comment.
Harris wrote that as vice-president she was in the “worst position” to tell Biden not to run for president again.
“I knew it would come off to him as incredibly self-serving if I advised him not to run,” she wrote. “He would see it as naked ambition, perhaps as poisonous disloyalty, even if my only message was: Don’t let the other guy win.”
The Atlantic published a 3,000-word excerpt from Harris’s book – the title is a reference to the length of her failed presidential campaign. The book will be published in full later this month.
Biden withdrew from the 2024 race following a dismal debate performance against then Republican candidate Donald Trump.
The debate performance fuelled questions about Biden’s age and mental fitness to lead the country. Harris eventually lost the election to Trump.
Harris wrote that 81-year-old Biden’s choice to run for re-election “should have been more than a personal decision”.
“The stakes were simply too high. This wasn’t a choice that should have been left to an individual’s ego, an individual’s ambition,” she wrote.
She denied that there was a “big conspiracy” to hide Biden’s frailty and described the former president as “a smart guy with long experience and deep conviction, able to discharge the duties of president”.
“But at 81, Joe got tired. That’s when his age showed in physical and verbal stumbles,” she wrote.
Harris also alleges the White House failed to adequately respond to her critics.
The former vice-president recalled securing billions of dollars in investment commitments from private companies for Latin American countries to help tackle the root cause of migration.
Despite this, Harris wrote, Republicans “mischaracterized my role as ‘border czar'” – a description that dogged her during her presidential campaign as the number of illegal border crossings spiked.
“No one in the White House [communications] team helped me to effectively push back and explain what I had really been tasked to do, nor to highlight any of the progress I had achieved,” she wrote.
Harris also described a trip she made to Texas in July 2024, in the wake of a devastating hurricane, and listening to a televised address by Biden while in a hotel room in Houston.
“It was a good speech, drawing on the history of the presidency to locate his own place within it,” she wrote. “But as my staff later pointed out, it was almost nine minutes into the 11-minute address before he mentioned me.”
Biden and Harris both ran for the Democratic nomination in 2020, and Biden chose his former rival as his running mate. Their ticket defeated Donald Trump and Mike Pence in November of that year.
Despite suggestions from critics that he was too old to serve a second four-year term, Biden launched a re-election bid in 2023.
Harris plans to go on a book tour of 15 cities, including in the United Kingdom and Canada, for 107 Days. The book is expected to go on sale on 23 September.
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Larry Ellison eclipses Elon Musk as world’s richest person

Oracle’s Larry Ellison became the richest person in the world Wednesday morning, with shares of the tech giant he co-founded surging more than 40%.
As of 10 a.m. ET, Ellison’s wealth was nearly $400 billion. Tesla CEO Elon Musk, who had occupied the top spot, currently has a fortune of about $385 billion, according to Bloomberg. The news outlet keeps tabs on the world’s wealthiest people with its billionaires index.
Behind Ellison and Musk in the rankings sit Meta founder Mark Zuckerberg, Amazon founder Jeff Bezos and Google co-founders Larry Page and Sergey Brin.
The rapid rise in Ellison’s wealth comes as he and his family push into artificial intelligence, media and politics.
Oracle’s stock move Wednesday was fueled primarily due to the company announcing a $450 billion-plus backlog for cloud services and multibillion-dollar computing contracts with major AI players Nvidia and ChatGPT backer OpenAI.
“Over the next few months, we expect to sign-up several additional multi-billion-dollar customers,” Oracle said. It expects that backlog of business will likely soon “exceed half-a-trillion dollars.”
The Ellison family further expanded its empire when Ellion’s son, David, recently completed an $8 billion takeover of CBS and MTV owner Paramount Global. That transaction was funded in part by $6 billion from the Ellison family fortune, CNBC reported.
Larry Ellison, a major backer of President Donald Trump, also recently visited the White House, announcing a massive datacenter project with Softbank’s chief Masayoshi Son and OpenAI CEO Sam Altman.
That project promised to use Oracle technology in creating the $500 billion network of datacenters.
Ellison, 81, co-founded Oracle more than 40 years ago. The company’s stock market value closed in on $1 trillion during Wednesday’s trading.
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Live updates: Trump’s emergency order over Washington, D.C., set to expire

Congress did not extend President Donald Trump’s Aug. 11 order that federalized the Washington, D.C., city police force and launched a surge of law enforcement into the city. The takeover will end at midnight, according to Mayor Muriel Bowser’s office, but in practical terms, what citizens see might not change much. D.C. guard members’ orders have been extended through December, and they are under the president’s direct command, unlike in the states where governors command their National Guard contingents.
This measure of control the city may be regaining comes the same day a House committee begins debating 13 bills that, if approved, would wrest away even more of the city’s governing ability.
Trump’s takeover of the capital’s policing and Wednesday’s discussions by the House underscore how interlinked the nation’s capital is with the federal government and how much the city’s capacity to govern is beholden to federal decisions.
In practical terms, what citizens see might not change much.
Other news we’re following today:
- Transit secretary probes North Carolina transit after killing: Following the killing of Ukrainian refugee Iryna Zarutska on a Charlotte train last month, Transportation Secretary Sean Duffy has threatened to pull federal funding if his department’s investigation finds security problems in the North Carolina city’s mass transit system. Charlotte’s mayor called for a “bipartisan solution” to address repeat criminal offenders.
- Detained Hyundai plant workers: South Korean media reports a charter plane has left for the U.S. to bring back Korean workers detained in an immigration raid in Georgia. A total of 475 workers, more than 300 of them South Koreans, were rounded up in the Sept. 4 raid at the Hyundai battery plan. South Korea’s government later said it reached an agreement with the U.S. for the release of the workers.
- Lisa Cook to remain Fed governor for now: A federal judge ruled Tuesday that the embattled Federal Reserve governor can remain in her position while she fights Trump’s efforts to fire her. The ruling, which will almost certainly be appealed, is a blow to the Trump administration’s efforts to assert more control over the traditionally independent Fed, which sets short-term interest rates to achieve its congressionally mandated goals of stable prices and maximum employment.
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