US wholesale inflation unexpectedly fell in August, suggesting inflationary pressures may be easing just as the Federal Reserve prepares for its next interest rate decision.
Data released by the Bureau of Labor Statistics Wednesday showed that the producer price index — which tracks inflation in the supply chain before it reaches consumers — declined 0.1% in August, marking the first monthly drop since April. The decrease was partly driven by falling service-sector margins, suggesting that companies absorbed some of the higher costs linked to US President Donald Trump’s tariffs rather than passing them on to consumers.
The latest figures come as the Fed is widely expected to cut interest rates at its meeting next week, following recent economic data pointing to a cooling labour market.