U.S. Producer Prices Unexpectedly Edge Lower In August
September 12 2018 - 5:07AM
RTTF2
Producer prices in the U.S. unexpectedly saw a modest decrease
in the month of August, according to a report released by the Labor
Department on Wednesday.
The Labor Department said its producer price index for final
demand edged down by 0.1 percent in August after coming in
unchanged in July. Economists had expected prices to rise by 0.2
percent.
The unexpected drop in producer prices came as prices for final
demand services dipped by 0.1 percent in August, matching the
decrease seen in the previous month.
Over 80 percent of the decrease in prices for final demand
services can be traced to margins for machinery and equipment
wholesaling, which tumbled by 1.7 percent.
The indexes for health, beauty, and optical goods retailing,
application software publishing, airline passenger services, and
hospital outpatient care also fell, while prices for loan services
jumped by 3.0 percent.
Meanwhile, the Labor Department said the index for final demand
goods was unchanged in August after increasing in each of the prior
three months.
Excluding food and energy prices, core producer prices still
edged down by 0.1 percent in August following a 0.1 percent uptick
in July. Core prices had been expected to increase by 0.2
percent.
Producer prices in August were up by 2.8 percent compared to the
same month a year ago, reflecting a slowdown from the 3.3 percent
increase in July.
Core prices were up by 2.3 percent year-over-year in August
compared to the 2.7 percent jump in the previous month.
On Thursday, the Labor Department is scheduled to release a
separate report on consumer price inflation in the month of
August.
Consumer prices are expected to rise by 0.3 percent in August
after edging up by 0.2 percent in July. Core consumer prices are
expected to tick up by 0.2 percent.
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