The CPI Data Was Horrible, But The PPI Is Better

After yesterday's major miss on consumer price inflation from the August CPI report, today the August Producer Price Index Summary offers a glimmer of hope for September.

The Producer Price Index for final demand fell 0.1 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices decreased 0.4 percent in July and advanced 1.0 percent in June. (See table A.) On an unadjusted basis, the index for final demand moved up 8.7 percent for the 12 months ended in August.

Unlike the CPI, core PPI actually fell in August, which gives a bit of hope that there might yet be a decline in the CPI come September.