Producer prices in the US continued to decline in August

The US Department of Labor announced PPI data for August.

Accordingly, PPI decreased by 0.1 percent in August compared to the previous month.

The data, which continued to decline in line with market expectations, decreased by 0.4 percent in July.

The decrease in producer prices in this period was due to the 12.7 percent decrease in gasoline prices.

Producer prices rose 8.7 percent year-on-year in August.

The annual rise in producer prices, which fell short of expectations, was expected to be 8.8 percent in August. Producer inflation was recorded as 9.8 percent per annum in July.

Core PPI, which does not include variable food and energy prices, also increased by 0.4 percent monthly and 7.3 percent annually in August.

The market expectation for the core PPI was an increase of 0.3 percent on a monthly basis and 7.1 percent on an annual basis. Core PPI increased by 0.3 percent monthly and 7.7 percent annually in July.

By measuring the prices of inputs used in production, the PPI gives clues about final product prices and headline inflation. The US Federal Reserve (Fed) tracks all inflation indicators, including the PPI.