The White House has declared victory over inflation after the Producer Price Index rose just 2.6% year-on-year in August, below market predictions of 3.3%. Officials highlighted that wholesale prices also slipped versus July, with energy goods, trade services, and final demand services all cheaper.

Press Secretary Karoline Leavitt argued the figures show President Donald Trump’s tariff strategy is holding firms back from "outsized" price hikes, contradicting warnings that the duties would stoke consumer costs.

Administration aides pointed to the National Federation of Independent Business survey, which showed small-business optimism at its highest level since January, as further evidence that lower input costs are filtering through the economy.

The White House framed the data as proof that the "Biden inflation crisis" has been "crushed," insisting consumers "are seeing little effect on prices from tariffs" and pressing Fed Chair Jerome Powell to act swiftly.