(NEW YORK) — Wholesale prices unexpectedly dropped in August, clocking in lower than economists expected and defying concerns about a tariff-induced spike in costs suffered by suppliers.

Producer prices fell 0.1% in August, rolling back some of a sharp increase in wholesale prices that took hold in the previous month, the U.S. Bureau of Labor Statistics said on Wednesday.

Since President Donald Trump began escalating tariffs earlier this year, the monthly wholesale-price measure has drawn close attention as an indicator of a potential pass through to consumer prices.

In July, producer prices rose 0.9%, exceeding economists’ expectations and stoking fear of an eventual hike in prices paid by shoppers. The downshift in wholesale prices last month could ease some of those worries, though a

See Full Page