July PCE Report: Core Inflation Expected to Remain Steady Amid Rising Tariff Pressures

The July PCE inflation report is expected to show gradually increasing pressures for tariffs, but core PCE inflation is expected to be little changed, according to the Commerce Department's Bureau of Economic Analysis.

The US government has taken a significant step towards increasing transparency in economic data by publishing key macroeconomic indicators on public blockchains. This initiative, facilitated by Chainlink and Pyth, aims to provide real-time, verifiable data for automated trading, prediction markets, and improved DeFi risk models.

Onchain Economic Data: A New Era of Transparency

On August 28, 2025, the US government announced that it would publish official economic data onchain. This move includes publishing Bureau of Economic Analysis (BEA) data such as Gross Domestic Product (GDP), the Personal Consumption Expenditures (PCE) price index, and real final sales to private domestic purchasers [1]. Chainlink and Pyth were selected as oracle providers for this project, with Chainlink handling a broader range of BEA data feeds and Pyth focusing specifically on GDP data.

Implications for Markets and DeFi

The onchain publication of economic data has immediate implications for both traditional markets and decentralized finance (DeFi). Market participants reacted positively to the announcement, with the price of Pyth (PYTH) surging by nearly 70% and Chainlink (LINK) rallying by about 61% in August [1]. This indicates heightened volatility in oracle-related tokens when selected for high-profile government projects.

For DeFi, the availability of real-time macroeconomic inputs enables automated trading strategies, real-time prediction markets, and improved risk management for various financial instruments. Smart contracts can now trigger actions based on official macroeconomic releases, providing a more responsive and efficient financial ecosystem.

Accessing Onchain Economic Data

To access the onchain economic data, market participants and developers can subscribe to the feeds provided by Chainlink or Pyth. By integrating these feeds into trading algorithms or DeFi risk models, they can leverage live macro inputs for better decision-making and risk management.

Key Takeaways

- Verifiable Data: Onchain publication ensures that official macroeconomic figures are verifiable and tamper-resistant.
- Oracle Roles: Chainlink and Pyth are selected to publish different macroeconomic feeds, enabling smart-contract consumption.
- Market Impact: Oracle tokens and related markets can experience rapid price movements, reflecting investor sentiment towards government data initiatives.

Conclusion

The publication of official economic data onchain marks a practical step towards greater transparency and programmable macro inputs. With Chainlink and Pyth delivering BEA feeds, developers and traders gain reliable, onchain signals for automation and risk management. As adoption progresses, expect to see new DeFi products and protocol integrations leveraging these real-time macroeconomic inputs.

References

[1] https://en.coinotag.com/us-government-may-publish-economic-data-onchain-via-chainlink-and-pyth-potentially-supporting-crypto-markets/