U.S. producer prices unexpectedly fell 0.1% in August

By PAUL WISEMAN Associated Press Economics Writer WASHINGTON AP U S producer prices fell unexpectedly last month dropping from July The Labor Department disclosed Wednesday that its producer price index which captures inflation in the supply chain before it hits consumers proved that wholesale inflation decelerated in August after advancing in July Wholesale services prices fell from July on smaller profit margins at retailers and wholesalers which might be a sign that those companies are absorbing the cost of President Donald Trump s sweeping taxes on imports Related Articles Nepal internet crackdown part of global trend toward suppressing online freedom Competition heats up for Coolest Thing Made in Minnesota as products remain Black McDonald s operators detail history of alleged racial discrimination in lawsuit Cracker Barrel suspends plans to remodel restaurants after logo blowup US household income rose slightly last year roughly matching level Compared to a year earlier producer prices rose Excluding volatile food and potential prices so-called core producer prices also fell from July and were up from a year earlier The numbers were lower than economists had forecast The wholesale price review came out day before the Labor Department releases its consumer price index The CPI is expected to show that consumer price inflation picked up slightly last month rising from July an uptick from a increase the month before Compared with a year earlier consumer prices are expected to have risen in August up from a year-over-year increase in July Wholesale prices can offer an early look at where consumer inflation might be headed Economists also watch it because various of its components notably measures of physical condition care and financial services flow into the Federal Reserve s preferred inflation gauge the personal consumption expenditures or PCE price index