In August the inflation declined for the second consecutive month. However, the price of necessities and everyday goods has remained at a multi-decade high. Many American households and businesses are feeling the pressure of the prices.
The Labor Department said Wednesday that its producer price index on the wholesale level declined by 0.1% between July and August. When compared to the rate on an annual basis, the prices have increased by 8.7%. This is a much lower percentage than the 9.8% experienced a month earlier.
Economists surveyed by Refinitiv said that they were expecting a monthly drop of 0.1% and an annual gain of 8.8%. In the last year, the core prices have increased by 5.7%.
In the last month, the prices for goods dropped by 1.2%. This decrease was in part driven by the 6% lowering in energy pricing, and the 12.7% decline in gas prices. Food prices remained stable in the past month.
For the fourth consecutive time, the services index increased 0.4% in August. This has been driven up by the 0.8% increase in trade services.
On Tuesday stocks fell rapidly as many are worried over the recent reports. The Dow Jones Industrial Average lowered by 1,276 points.