We learned Tuesday that consumer prices are relatively stable across many goods and services, despite higher tariffs. On Thursday, we learned producer prices are spiking.

China’s producer prices fell 3.6% year-on-year in July 2025, matching June’s pace and exceeding market expectations for a 3.3% decline, marking the 34th consecutive month of producer deflation.

Prices rose faster for producers than consumers last month, suggesting that U.S. importers may, for now, be eating the cost of Trump's tariffs rather than passing them on to customers.

The producer and consumer inflation numbers are both issued by the Labor Department's Bureau of Labor Statistics, which is already in Trump crosshairs.

A new analysis finds that U.S. consumers have absorbed only a small portion of the tariffs imposed by the Trump administration — but Goldman Sachs expects that to change in the months ahead.