– U.S. producer prices increased less than expected in July
– Cost of services fell the most in nearly 1-1/2 years
– Signs of diminishing pricing power for businesses
– Waning inflation pressures reinforce hopes of an interest rate cut next month
– Inflation measures tracked by the Federal Reserve show favorable readings
– Surge in unemployment rate in July leads to fears of recession
– Producer price index edged up 0.1% in July
– Services prices fell by 0.2%
– Ebbing pricing power also evident in small businesses survey
– Financial markets anticipate a rate cut in September
– Goods prices rebounded in July, driven by energy prices
– Rebound in energy prices likely to be short-lived
– Meats, fresh fruits, and melons cost more relative to prior month
– Core PPI increased 3.3% year-on-year
– Fed’s primary focus remains on the labor market at upcoming policy decisions.