The release of US Producer Price Index (PPI) data has significant implications for financial markets and the Federal Reserve’s upcoming policy decisions. This month’s PPI report shows headline prices decreased by 0.1% in August after rising 0.7% in July, while year-on-year growth was at 2.6%. This contrasts with market expectations of 3.3% year-over-year inflation for overall Producer Prices, and 3.5% for core inflation. Experts attribute the recent increase in PPI to expanding DeFi applications and growing institutional investments. This data adds complexity to the Fed’s policy debate as it may influence the likelihood of a rate cut. While a 25 basis point cut is widely expected next week, the potential for a more aggressive 50 basis point reduction is increasing.