Producer Prices Unexpectedly Declined in August, Undercutting Tarifflation Fears

Prices paid to U.S. businesses unexpectedly fell in August, putting pressure on the Federal Reserve to cut interest rates and undercutting claims that the Trump administration’s tariffs would cause inflation to pick up.

The producer price index for final demand declined 0.1 percent from a month earlier and July’s figure was revised down, according to a Bureau of Labor Statistics report. Compared with a year ago, the PPI is up 2.6 percent.

Economists had forecast producer prices would rise by 0.3 percent for the month and 3.3 percent over the past 12 months. The July jump in producer prices was revised down from a 0.9 percent increase to a 0.7…

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