U.S. PPI unexpectedly declined in August strengthens reasons for the Fed's interest rate cut

Odaily Planet Daily News The U.S. producer price index fell unexpectedly in August, the first decline in four months, further strengthening the reason for the Fed's rate cut. According to a report released by the Bureau of Labor Statistics on Wednesday, the producer price index (PPI) fell 0.1% month-on-month, while the July data was downgraded. Year-on-year, PPI rose 2.6%. The report shows that despite Trump's tariff policy pushing up corporate costs, businesses avoided substantial price hikes last month. While the decline comes after a sharp rise in July, many companies are concerned that a sharp price hike could scare customers away in the context of economic uncertainty continuing to impact consumer decisions. Prices of commodities excluding food and energy rose by 0.3%; service costs fell by 0.2%. In the service sector, profit margins for wholesalers and retailers fell by 1.7%, the biggest drop in more than a year. Since the beginning of this year, profit margins have fluctuated significantly over the months, highlighting the uncertainty of the impact of trade policies on prices and demand. (Jin Shi)