Price pressures faced by U.S. producers eased in August, marking the slowest year-over-year increase since February in data released Thursday.
The headline Producer Price Index (PPI) showed sharper-than-anticipated deceleration, while core inflation remained stable. The report mirrored the pattern of Wednesday’s consumer inflation data.
Additionally, labor market data indicated a small uptick in initial jobless claims, aligning with economist expectations.
August Producer Price Index Report: Key Highlights
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Headline PPI for final demand slowed to 1.7% year-over-year in August, down from a downwardly revised 2.1% in July. This was slightly below economist expectations of 1.8% as tracked by TradingEconomics.
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On a monthly basis, PPI rose 0.2%, surpassing both July’s downwardly revised flat reading and the forecasted 0.1% increase.
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Core PPI (excluding food and energy) held steady at 2.4% year-over-year in August, slightly below market expectations of 2.5%.
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On a month-over-month basis, core PPI rose 0.3%, accelerating from the prior downwardly revised 0.2% contraction and surpassing forecasts of 0.2%.
|
PPI Metrics |
August 2024 |
July 2024 |
Consensus (August) |
|---|---|---|---|
|
Headline PPI (YoY) |
1.7% |
2.1% |
1.8% |
|
Headline PPI (MoM) |
0.2% |
0.0% |
0.1% |
|
Core PPI (YoY) |
2.4% |
2.4% |
2.5% |
|
Core PPI (MoM) |
0.3% |
-0.2% |
0.2% |
Weekly Unemployment Claims Update
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Initial jobless claims increased by 3,000 to a total of 230,000 for the week ending Sept. 7, matching forecasts of 230,000.
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The four-week moving average for jobless claims, which helps smooth out weekly fluctuations, only marginally increased from 230,250 to 230,750.
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Continuing claims – a measure of those remaining on unemployment benefits after their initial filing – increased by 5,000 to 1.85 million, matching projections.
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This article Producer Inflation Slows To 1.7% Yearly In August, Jobless Claims Align With Expectations originally appeared on Benzinga.com
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