COOLER US PRODUCER INFLATION HINTS AT SOFTENING DEMAND

Producer Price Index (PPI) tracks the prices domestic producers receive for their goods and services. The unexpected decline suggests that businesses are not passing higher input costs (from tariffs) on to consumers, possibly absorbing them instead.

Retailers and wholesalers likely accepted smaller profit margins. Businesses may fear raising prices due to weak consumer demand, indicating a cooling economy. The Federal Reserve is expected to cut rates by 0.25% at its upcoming meeting.

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