LONDON (ShareCast) – (ShareCast News) – The US producer price index, which measures the prices companies receive for goods and services, was unchanged in August after rising 0.2% in July, according to data released by the Bureau of Labor Statistics. Excluding food and energy, core prices were up 0.3% in August, versus consensus expectations for a 0.1% drop month-on-month. Over the year, prices were down 0.8%.
The drag from lower crude oil prices and a strong dollar was offset by a rise in profit margins for apparel, footwear and accessories retailing, which jumped 7%.
The benign inflation figures are likely to weigh on the US Federal Reserve, which wants to see prices closer to its 2% target before it raises interest rates.
The Fed is due to announce its decision next Thursday at the end of a two-day policy meeting.