According to the latest economic indicators, inflationary pressures seem to be gradually easing. The Producer Price Index for August 2025 showed a month-on-month actual decline of 0.1%, which is lower than the market expectation of a 0.3% rise. As a leading indicator of the Consumer Price Index, the decline in PPI suggests that the momentum of future consumer price increases may weaken.

At the same time, the labor market also shows signs of weakness. Non-farm employment in August only increased by 22,000, far below the previous value and market expectations, reflecting that overall economic demand may be slowing down. This trend may further suppress inflationary pressures.

In addition, energy prices fell by 1.07% in July, while food prices saw limited increases, rising only 0.05% month-on-month in July. These factors collectively contributed to a cooling inflation trend. Considering the year-on-year CPI of 2.7% in July, the CPI in August may struggle to meet market expectations.

These economic indicators combined provide a relatively positive signal for the market. The easing of inflationary pressures may offer more room for maneuver for economic policymakers, while also potentially impacting investors' allocation strategies across various asset classes. However, we still need to closely monitor subsequent data to comprehensively assess the economic trajectory and inflation trends.