Inflation at the wholesale level rose 8.7% year over year in August, according to the producer price index. Prices fell 0.1% from July to August, according to data from the Bureau of Labor Statistics released Wednesday.
"Just one day after August's disappointing Consumer Price Index report triggered a meltdown on Wall Street, a separate inflation report indicated that wholesale price increases are showing signs of improvement," per CNN.
However, wholesale prices are "still a painfully high level that suggests prices will keep spiking for months to come," according to AP News. Core wholesale inflation, which excludes volatile food and energy costs, rose 0.4% from July to August and 7.3% in August compared with a year ago.
"This week's two key inflation reports will provide crucial context for Fed policymakers, who meet next week to determine the scope of the central bank's next rate hike," per CNN. "Tuesday's CPI report has already pushed some analysts to call for a 100-basis-point increase, up from recent expectations of a third-straight 75 basis points."