US PPI unexpectedly declined in August, strengthening reasons for the Fed's rate cut

According to Coinjie.com, the U.S. producer price index unexpectedly fell on September 10, the first decline in four months, further strengthening the reason for the Federal Reserve to cut interest rates. A report released by the Bureau of Labor Statistics on Wednesday showed that the producer price index (PPI) fell 0.1% month-on-month, with data in July correcting downward. Year-on-year, PPI rose 2.6%. The report shows that while Trump’s tariffs pushed up corporate costs, businesses avoided a sharp price increase last month. While the decline comes after a sharp rise in July, many companies are concerned that a sharp price increase could scare away customers amid ongoing economic uncertainty that affects consumer decisions. Prices of commodities, excluding food and energy, rose 0.3%, while service costs fell 0.2%. In the service industry, profit margins for wholesalers and retailers fell by 1.7%, the biggest drop in more than a year. Profit margins fluctuated significantly month by month this year, highlighting the uncertainty of the impact of trade policies on prices and demand.