Jason Katz, Managing Director and Senior Portfolio Manager at UBS, provides an overview of the market’s response to the Fed on “Making Money”.
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.