U.S. producer prices fell unexpectedly last month, dropping 0.1% from July.

The Labor Department reported Wednesday that its producer price index — which captures inflation in the supply chain before it hits consumers — showed that wholesale inflation decelerated in August after advancing 0.7% in July. Wholesale services prices fell 0.2% from July on smaller profit margins at retailers and wholesalers, which might be a sign that those companies are absorbing the cost of President Donald Trump’s sweeping taxes — tariffs — on imports.

Compared to a year earlier, producer prices rose 2.6%.

Excluding volatile food and energy prices, so-called core producer prices also fell 0.1% from July and were up 2.8% from a year earlier.

The numbers were lower than economists had forecast.

The who

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