Economic Buzz: US producer prices edge slightly lower in August

Largely reflecting a sharp pullback in prices for trade services, the Labor Department released a report on Wednesday unexpectedly showing a modest decrease by U.S. producer prices in month of August.

The Labor Department said its producer price index for final demand edged down by 0.1 percent in August after climbing by a downwardly revised 0.7 percent in July.

The report also said the annual rate of producer price growth slowed to 2.6 percent in August from a downwardly revised 3.1 percent in July.

The unexpected monthly decrease by producer prices came amid a dip by prices for services, which slipped by 0.2 percent in August after increasing by 0.7 percent in July.

Prices for travel services led the way lower, plunging by 1.7 percent, while prices for transportation and warehousing services jumped by 0.9 percent and prices for other services rose by 0.3 percent.

Meanwhile, the report said prices for goods inched up by 0.1 percent in August after rising by 0.6 percent in July despite a 0.4 percent decrease in energy prices.

The Labor Department also said core producer prices, which exclude prices for food, energy and trade services, increased by 0.3 percent in August after climbing by 0.6 percent in July.

The annual rate of growth by core producer prices crept up to 2.8 percent in August from 2.7 percent in July.

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