Wholesale Prices Fall In August – Beat Expectations
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Wholesale declined in August, beating expectations.
Inflation data:
PPI: -0.1% decrease month over month
Expected: 0.3% increase month over month
PPI Core: -0.1% decrease month over month
Expected: 0.3% month over month
Wholesale prices surprisingly fell slightly in August, providing breathing room for the Federal Reserve to approve an interest rate cut at its meeting this month, according to a Bureau of Labor Statistics report Wednesday.
The producer price index, which measures input costs across a broad array of goods and services, fell 0.1% for the month, after a sharp increase in July and well off the Dow Jones estimate for a 0.3% increase.
Core PPI, which excludes volatile food and energy prices, also was off 0.1% after being expected to increase 0.3% as well.
PPI is viewed as a bellwether for future price changes.
Helping to drive prices lower was a 1.7% drop in trade services, a volatile category reflective of producers, wholesalers and retailers’ profit margins.
Economists were expecting that the index, which measures the change in prices received by producers of goods and services, would increase by 0.4% on a monthly basis and hold unchanged at the previously estimated 3.3% from a year ago.
PPI serves as a potential bellwether for the prices consumers may see at businesses in the months ahead.
Donald Trump blasted Jerome Powell after the inflation data was released.
Just out: No Inflation!!! “Too Late” must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!! President DJT
Trump’s economic policies are working!
