U.S. producer prices fall in August as costs of services decline

U.S. Federal Reserve building in Washington. The Fed Reserve is expected to cut interest rates next Wednesday.

U.S. producer prices unexpectedly fell in August, pulled down by a decline in the costs of services.

The Producer Price Index for final demand dipped 0.1 per cent after a downwardly revised 0.7 per cent jump in July, the Bureau of Labor Statistics said on Wednesday. Economists polled by Reuters had forecast the PPI would advance 0.3 per cent after a previously reported 0.9 per cent surge in July.

Services prices fell 0.2 per cent after rebounding 0.7 per cent in July. Goods prices edged up 0.1 per cent after increasing 0.6 per cent in the prior month. In the 12 months through August, the PPI increased 2.6 per cent after climbing 3.1 per cent in July.

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