The producer price index—a measure of wholesale prices—declined in August, according to CNBC.
The numbers: The producer price index fell 0.1% in August, but without accounting for food, energy and trade services, it rose 0.2%.
- “On a year-over-year basis, the index . . . increased 8.7%, the lowest increase since August 2021.”
What’s next? The Federal Reserve will meet next week and is expected to raise rates by a half to three-quarters of a percentage point.
Our take: “These data will likely provide mixed comfort,” said NAM Chief Economist Chad Moutray.
- “On the one hand, it is encouraging to see some deceleration in these measures, but even with some easing, raw material costs continue to rise at very elevated levels.”
- “Indeed, manufacturers cite rising raw material costs as their top challenge, followed closely by supply chain and workforce challenges, with the very significant pace of price growth in this data over the past year helping to explain why.”