"According to the U.S. Bureau of Labor Statistics, the producer price index (PPI), which reflects wholesale prices in the U.S., declined 0.1% in August. This was 20 basis points less than economists had been predicting, and follows a downward revision to 0.7% for July's wholesale price inflation. Both total PPI, and core PPI, which excludes volatile food and energy prices, declined by 0.1%."
"What does this mean for investors? Well, last week we saw two reports indicating weak hiring in the U.S., indicative of an economy slowing enough that it might frighten the Federal Reserve into lowering interest rates. Now we have at least one inflation reading (expect another, the consumer price index, tomorrow) that suggests it might be possible to lower interest rates safely, without exacerbating inflation rates."
The U.S. producer price index declined 0.1% in August, coming in 20 basis points below economists' expectations and following a downward revision to July's wholesale inflation. Both headline and core PPI, which excludes food and energy, fell 0.1%. Recent weak hiring data point to a slowing economy, and the softer wholesale inflation reading raises the prospect of a Federal Reserve interest-rate cut at the September 17 FOMC meeting. Markets responded positively, with the Vanguard S&P 500 ETF up about 0.6% premarket. Oracle missed fiscal Q1 2026 earnings by one cent, reporting $1.47 per share on $14.9 billion in sales.
Read at 24/7 Wall St.
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