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Producer prices were flat in August
dairy cows
dairy cows

(Eloy Alonso/Reuters)

Producer prices went nowhere in August.

The Producer Price Index (PPI) for final demand was flat month-on-month, and fell 0.8% year-on-year.

Excluding volatile food and energy costs, "core" PPI rose 0.3% compared to July, and rose 0.9% compared to a year ago.

Economists had estimated that PPI for final demand fell 0.1% month-on-month and 0.9% year-on-year.

By measuring prices from the perspective of sellers, PPI is a forward-looking measure of consumer prices, and ultimately, inflation.

"In one line: Third straight outsized core gain, but probably not a serious shift in the trend," wrote Pantheon Macroeconomics' Ian Shepherdson in a client note.

PPI (1)
PPI (1)

(Pantheon Macroeconomics)

More to come ...

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