Source: Sharecast
According to the Bureau of Labor Statistics, headline PPI fell 0.1% month-on-month, following a 0.7% rise in July, defying economists expectations for a 0.3% increase. On an annualised basis, PPI eased to 2.6%, while core PPI, which strips out volatile food, energy and trade services, rose 0.3% month-on-month and 2.8% year-on-year, marking its strongest annual gain since March.
The monthly decline was largely attributed to a 0.2% drop in final demand services, offsetting a 0.1% uptick in goods prices.
Wednesday's PPI release comes ahead of Thursday's consumer price index print, which was expected to show headline inflation rising to 2.9% annually. Together, the two reports will help shape expectations for the Fed’s September policy meeting, where markets are pricing in a potential pivot toward easing.
Reporting by Iain Gilbert at Sharecast.com