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Wall Street braces for key inflation reports as August data due Thursday and Friday

Confirmed1 source · Sep 5, 2026

The Producer Price Index and Consumer Price Index releases will provide critical signals on inflation's trajectory as it remains above 3%.

Wall Street braces for key inflation reports as August data due Thursday and Friday
Image via AP

What happened

The U.S. will release the Producer Price Index (PPI) for August on Thursday and the Consumer Price Index (CPI) on Friday. The PPI measures wholesale-level prices before businesses pass costs to consumers, while the CPI tracks price changes for goods including groceries, furniture, and clothing, as well as services from car maintenance to restaurant dining. These reports are closely monitored by Wall Street and the Federal Reserve to assess inflation's direction.

Context

Inflation remains above 3% and is outpacing wage growth, creating financial strain on households and businesses. Rising energy prices stemming from the U.S. war with Iran—which has disrupted shipping through the Strait of Hormuz, a passage carrying roughly 20% of global oil supply—are fueling inflation. Ongoing U.S. tariff conflicts with much of the world pose additional upward pressure on prices. The Federal Reserve has kept its benchmark interest rate steady but is expected to raise it at least once this year to help cool inflation toward its stated 2% target.