Producer prices in the United States fell more than forecasts in September on a decline in the cost of goods and services, giving the Fed more room to cut interest rates again this month to reduce the impact of trade tensions on the performance of the U.S. economy.
The producer price index (PPI) saw a 0.3 percent decrease in September, the biggest drop since January this year, following a 0.1 percent gain in August and below market expectations of 0.1 percent advance. The year-on-year reading descended to 1.4 percent from a previous of 1.8 percent.
Core PPI It fell to 2 percent in September from 2.3 percent and exceeded market expectations at 2.3 percent. On a monthly basis, the core PPI came in at -0.3 percent.
The dollar index was 0.04 percent down at 98.62 from the session’s open at 98.59, after closing at 98.58 the day before.