Producer prices were unchanged in August

The producer price index (PPI) for final demand was unchanged in August, according to the Labour Department.

Economists had forecast an increase by 0.1% month-on-month, according to Bloomberg.

Prices for final demand services edged up 0.1% while those for final demand goods fell 0.4%.

Core PPI, which excludes volatile food and energy costs, rose 0.1% month-on-month, matching expectations.

Compared to the same time a year ago, PPI for final demand rose 0.1%, outpacing the flat reading that was anticipated.

Producer prices are used as a forward-looking indicator of consumer-price inflation. The idea is that if wholesale prices are rising, retailers would likely pass these costs on to regular buyers.

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