Wholesale prices unexpectedly fell in August as producer inflation came in far below estimates, teeing up the Federal Reserve to slash interest rates next week.

The Producer Price Index, which measures final demand goods and services prices, declined 0.1% in August – significantly below estimates of a 0.3% rise and a heated 0.7% pace in July , the Bureau of Labor Statistics said Wednesday.

Over the past 12 months, the PPI rose 2.6% in August. 3

Excluding volatile food and energy prices, core PPI also fell 0.1% in August. The core figure is up 2.8% on a yearly basis.

President Trump was quick to slam Fed Chairman Jerome Powell after the tame inflation report, as the Fed has held off on cutting rates since December 2024, citing uncertainty around tariffs.

“Just out: No Inflation!

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