The producer price index for final demand decreased 0.5 per cent from a month earlier and rose 9.8 per cent from a year ago, Labor Department data showed Thursday. The pullback was due to a decline in the costs of goods, though services prices only edged up.
The figures suggest some pipeline inflationary pressures are beginning to ease, which could ultimately temper the pace of consumer price growth in coming months. Commodity prices, including oil, have dropped sharply in recent months, and there are indications that supply-chain conditions are improving. Consumer-price data out Wednesday also showed a welcome moderation in inflation in July, largely reflecting a pullback in prices at the pump.
Thursday’s report adds to separate data from S&P Global and regional Fed banks that showed a pullback in prices paid for inputs like materials in July.