The Labor Department’s August Producer Price Index shows a 0.2% increase in wholesale prices, meeting expectations, but core wholesale prices rose 0.3%, reversing a previous decrease.
U.S. central bankers will likely start long-awaited interest rate cuts next week with a quarter-of-a-percentage-point reduction.
Wall Street somewhat rebounded from a disaster on Tuesday, as main stock indexes grew over 1%. Investors searched for bargains after a global stock selloff and panic of a possible recession occurred on Monday.
The economy grew by 206,000 jobs in June, but unemployment was above 4% in the same month, according to the Labor Department said on Friday.
The Dow Jones Industrial Average hit the 40,000 point threshold for the first time ever on Thursday as investors on Wall Street were feeling timid over the idea of interest rate cuts.
According to the latest report, inflation increased in March, with a key barometer the Federal Reserve watches closely showing that price pressures continue to increase.
9,000 more people applied for unemployment benefits last week, bringing the total to 212,000—the highest number since January.
In the latest report inflation rose more than predicted in January due in part to grocery and housing costs.
The Federal Reserve’s long-term objective for U.S. inflation was persistently exceeded in November, with 3.1% growth, supporting central bankers’ arguments to maintain current interest rates this spring.
Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the U.S. Federal Reserve will cut interest rates as soon as March.