Wholesale inflation slowed again last month

Wholesale inflation slowed to its lowest level since February 2021, according to August’s Producer Price Index (PPI). While this drop in goods production costs offers hope for lower retail prices, stubbornly high service costs, like healthcare and transportation, complicate the outlook. The Federal Reserve remains cautious, as inflation isn't easing evenly across sectors.

Despite progress, the Fed is waiting for more consistent signs of inflation cooling before adjusting interest rates. For industries like real estate, this means continued uncertainty as borrowing costs remain high, though the slowdown in wholesale inflation hints at potential relief ahead.

Courtesy of CNN