By Mucahithan Avcioglu
ISTANBUL (AA) - US producer prices unexpectedly fell in August, with the Producer Price Index (PPI) declining 0.1% month-on-month, according to data released Wednesday by the Bureau of Labor Statistics.
The decline came in contrast to expectations of a 0.3% increase, while July's figure was revised downwards to 0.7%.
Prices for final demand goods rose 0.1%, following a 0.6% increase in July.
"A major factor in the August increase in the index for final demand goods was a 2.3- percent advance in prices for tobacco products," the bureau said in a statement.
In contrast, prices for utility natural gas decreased 1.8%.
Prices for final demand trade services fell 0.2%, the largest decline since moving down 0.3% in April.
"Three quarters of the August decrease in prices for final demand services can be attributed to a 3.9% decline in margins for machinery and vehicle wholesaling," it noted.
On the other hand, prices for portfolio management were up 2%.
Meanwhile, prices for final demand less foods, energy, and trade services rose 0.3%, marking the fourth consecutive increase.
Core PPI, which excludes volatile food and energy prices, declined 0.1% month-on-month in August, denying expectations of a 0.3% rise.
On an annual basis, producer prices rose 2.6%, below forecasts of a 3.3% rise.
The producer price index is an important indicator of consumer inflation, which will be announced Thursday.