2016.09.1509:46:00UTC+00U.S. Producer Prices Hold Steady In August

Wholesale prices in the U.S. held steady in the month of August, according to a report released by the Labor Department on Thursday.

The Labor Department said its producer price index for final demand was unchanged in August after falling by 0.4 percent in July. Economists had expected prices to inch up by 0.1 percent.

The flat reading on producer prices in August came as a decrease in prices for goods was offset by an increase in prices for services.

Goods prices fell by 0.4 percent, reflecting a sharp 1.6 percent drop in food prices as well as 0.8 percent decline in energy prices.

Excluding food and energy prices, core producer prices ticked up by 0.1 percent in August following a 0.3 percent drop in July. The modest increase in core prices matched economist estimates.

The uptick in core prices came as the index for final demand services edged up 0.1 percent in August following a 0.3 percent decline in July.

While prices for trade services and transportation and warehousing services fell by 0.6 percent and 0.4 percent, respectively, prices for other services climbed by 0.5 percent.

The Labor Department also said producer prices in August were unchanged compared to the same month a year ago following a 0.2 percent drop in July.

Core prices were up by 1.0 percent year-over-year in August, reflecting an acceleration from the 0.7 percent growth seen in the previous month.

Friday morning, the Labor Department is scheduled to release its more closely watched monthly report on consumer price inflation.