CNN
—
US producer prices continued to cool overall in August, showing that inflation across the economy is improving. But a closely watched measure of underlying inflation remained stubbornly elevated, reflecting the bumpiness in reining in price hikes.
The Producer Price Index, which measures average price changes seen by producers and manufacturers, was 1.7% for the 12 months ended in August, a slowdown from the 2.1% increase seen in July, according to Bureau of Labor Statistics data released Thursday.
On a monthly basis, prices rose 0.2%, a faster pace than in July, when prices were flat.
Economists had expected that prices would increase 0.2% on a monthly basis and 1.8% annually, according to FactSet estimates.
PPI serves as a potential bellwether for retail-level inflation in the months ahead. On Wednesday, the Consumer Price Index cooled to its lowest rate since February 2021 but also showed that some underlying inflation pressures — specifically, housing-related costs — remain stubbornly elevated.
