Increasing inflation is unexpectedly decreased in August, as the PPI index decreased by 0.1 % per month

The Ministry of Labor stated on Wednesday that the product price index – which captures Economic inflation In the supply chain before hitting consumers – he showed that wholesale inflation slowed in August after progressing by 0.7 % in July. Wholesale services prices decreased by 0.2 % from July on smaller profit margins at retailers and wholesaler merchants, which may be a sign that these companies accommodate the cost of President Donald Trump’s taxes – definitions – on imports.

Compared to the previous year, product prices increased by 2.6 %.

With the exception of the prices of flying food and energy, the prices of the basic producers also decreased by 0.1 % from July, and increased by 2.8 % from the previous year.

The numbers were less than the economists.

The wholesale price report was issued a day before the Ministry of Labor launched the consumer price index. The consumer price index is expected to show that consumer price inflation increased slightly last month, as it increased by 0.3 % from July, an increase of 0.2 % increase in the previous month. Compared to the previous year, consumer prices are expected to increase by 2.9 % in August, an increase of 2.7 % on a year in July.

Wholesale prices can provide an early view of the place where consumer enlargement can go. Economists are also seen because some of its components, especially health care and financial services, are flowing to the preferred inflation scale of the Federal Reserve – personal consumption expenses, or price index.

The low prices of producers makes it likely that the Federal Reserve Bank reduces the standard interest rate next week for the first time this year.

Trump was pressing the central bank to reduce prices. There are increasing signs that the economy was weaker than previously thought. On Tuesday, the Ministry of Labor stated that employers have added 911,000 jobs are less than reported originally In the 12 months that ended in March.