The Producer Price Index showed that wholesale prices dropped by 0.1% in August. File Photo by Angelina Katsanis/UPI | License Photo
Sept. 10 (UPI) -- Wholesale prices dropped just a bit in August, potentially allowing the Federal Reserve to cut interest rates at its September meeting.
The Bureau of Labor Statistics released its Producer Price Index on Wednesday, which measures input costs of goods and services. It reported wholesale prices dropped 0.1% for the month, below Dow Jones estimates of a 0.3% gain, while on a 12-month basis, the headline PPI saw a 2.6% gain.
The core PPI, which excludes food and energy prices, was also off 0.1% after being expected to climb 0.3%. Excluding food, energy and trade, the PPI posted a 0.3% gain and was up 2.8% from a year ago.
The July figure was revised down to 0.7% -- after reporting 0.9%.
