CNN —Inflation for US producers slowed further in September, adding to hopes that prices aren’t getting jacked up before they get to consumers.
The annual rate is running faster than the 1.6% gain economists expected, according to FactSet estimates; however, August’s rate was revised higher from the initial 1.7% estimate, so prices still fell in September.
PPI is important because it’s often seen as a bellwether for the price increases consumers will wind up paying down the line.
On Thursday, the Consumer Price Index — a measurement of average price changes for commonly purchased goods and services — cooled to 2.4%, its lowest rate since February 2021.
As a result, Fed officials have now shifted from trying to contain inflation to trying to keep the job market healthy, the other half of their so-called dual mandate.
Persons:
Price, that’s
Organizations:
CNN, of Labor Statistics, PPI, Federal Reserve