Consumer prices are rising, but consumer sentiment is improving

• The prices of some goods are increasing, but consumer sentiment is improving.
• The rise in producer prices is causing a slowdown in business.
• Consumer spending remains important for economic forecasts.

On August 15, 2025, new data on consumer inflation and consumer sentiment in the USA will be published. According to recent reports, certain consumer goods, such as meat and dairy, have increased in price, while gasoline prices have decreased.

Recently published Producer Price Index showed an increase of 3.3% year-on-year for July, which is the highest indicator since June 2022. This has triggered a slowdown in business, as companies begin to pass on higher costs to consumers.

At the same time, the new report on consumer sentiment, which will be published today, may indicate a significant improvement in consumer sentiment in August, continuing the positive trend of recent months. However, despite this improvement, the overall level of consumer sentiment remains lower than before Trump's election to the presidency.

Changes in consumer spending, which make up nearly two-thirds of economic activity in the USA, are important for assessing the state of the economy. Recent indicators suggest possible weakening of economic growth, as the annual growth rate of GDP for the first half of 2025 was only 1.2%.

Problems related to new tariffs, which were introduced under Trump's trade policy, may start to affect consumer prices in the near future. Although at this moment consumers do not feel all the negative consequences, it is expected that the prices of goods will rise if the situation does not change.

Tags: USA/Economy