Inflation eased and wholesale prices dipped in the month of August according to bullish numbers reported by The Bureau of Labor Statistics on Wednesday morning.
U.S. producer prices for the month of August came in lower than economists expected with wholesale services prices falling 0.2% from July and so-called core producer prices falling 0.1 percent.
The surprising numbers likely clear the path for Federal Reserve Chair Jerome Powell to cut interest rates next week.
“There is almost nothing to stop an interest rate cut from coming now,” Chris Rupkey, a chief economist at Fwdbonds, told CNBC in response to the PPI data.
The positive numbers come a week after the Bureau reported that the U.S. economy added only 22,000 jobs in August and a sharp downward revision of job growth numbers for the past year.
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