The cost of wholesale goods and services fell in August after a surprise surge in July, signaling inflation is somewhat contained and keeping the Federal Reserve on a path to cut interest rates soon.
The producer price index slipped 0.1% last month compared to a revised 0.7% advance in July, the government said Wednesday. Wall Street economists had forecast a 0.3% increase.
Producer costs reflect what companies pay each other for supplies. They often - but not always - herald changes in the rate of inflation.
The increase in wholesale costs in the 12 months ended in August dropped to 2.6% from 3.1% in the prior month.
The 12-month increase in the core rate moved up to 2.8% from 2.7% in the prior month. That's the highest level since March and points to persistent if mild price pressures in the economy.
