The US Producer Price Index (PPI) fell month-on-month (MoM) in August, following a rise in July, prompting the Federal Reserve to cut interest rates soon.
According to data released by the Labor Department on Wednesday, the PPI fell slightly by 0.1% on a seasonally adjusted monthly basis in August, compared to expectations for a 0.3% increase, compared to a 0.7% increase in July.
The PPI rose 2.6% on an annual basis in August, following a 3.1% increase in July.
The core PPI, which excludes food and energy products, rose 0.3% in August, marking the fourth consecutive monthly increase, while the annual PPI rose 2.8%, the largest pace since March.
The data indicates that companies refrained from raising prices significantly in August despite rising costs due to tariffs imposed by US President Donald Trump.
It also comes ahead of tomorrow’s Consumer Price Index (CPI) reading and reinforces expectations that the Federal Reserve will cut interest rates by 25 basis points (bps) at next week’s meeting.
The US Producer Price Index (PPI) fell month-on-month (MoM) in August, following a rise in July, prompting the Federal Reserve to cut interest rates soon.
According to data released by the Labor Department on Wednesday, the PPI fell slightly by 0.1% on a seasonally adjusted monthly basis in August, compared to expectations for a 0.3% increase, compared to a 0.7% increase in July.
The PPI rose 2.6% on an annual basis in August, following a 3.1% increase in July.
The core PPI, which excludes food and energy products, rose 0.3% in August, marking the fourth consecutive monthly increase, while the annual PPI rose 2.8%, the largest pace since March.
The data indicates that companies refrained from raising prices significantly in August despite rising costs due to tariffs imposed by US President Donald Trump.
It also comes ahead of tomorrow’s Consumer Price Index (CPI) reading and reinforces expectations that the Federal Reserve will cut interest rates by 25 basis points (bps) at next week’s meeting.
