WASHINGTON (Reuters) – U.S. producer prices fell for a second straight month in August as energy prices fell further, data showed on Wednesday.
Producer prices for final demand fell 0.1% a month after sliding 0.4% in July, the Labor Department said. In the month to 12 through August, the PPI rose 8.7% after rising 9.8% in July.
Economists polled by Reuters had forecast the PPI to fall 0.1% and rise 8.8% year-on-year.
The government on Tuesday announced a surprise monthly rise in consumer prices for August and an acceleration in underlying inflation, which reinforced expectations for a third
The Fed will raise interest rates by a basis point next Wednesday.
Excluding the volatile food, energy and trade services components, producer prices rose 0.2% in August. The so-called core PPI edged up 0.1% in July. In the month to 12 through August, core PPI rose 5.6% after rising 5.8% in July.