Wholesale inflation slowed in August for the second consecutive month, although prices for basic necessities remain at a multi-decade high, squeezing businesses and millions of American households .
The Labor Department said Wednesday its producer price index, which measures inflation at the wholesale level before it reaches consumers, fell 0.1% in August from a month earlier. On an annual basis, prices climbed 8.7% – a marked decline from the 9.8% rise recorded in July and the lowest level since August 2021.
The Refinitiv economists survey forecasts an 8.8% annual gain and a monthly decline of 0.1%.
Excluding food, energy and commercial services, wholesale inflation rose 0.2% for the month. This is below the expectation of a 0.3% gain. Over the past 12 months, core prices have climbed 5.7%.
Overall, goods prices fell 1.2% last month, contributing the most to lower headline inflation. This decrease can largely be attributed to a 6% drop final demand energy priceincluding a stunning 12.7% drop in gasoline prices, according to the Labor Department.
This is a developing story. Please check for updates.