US Manufacturers Notice Impact of Lower Fuel Price

US Manufacturers Notice Impact of Lower Fuel Price

US producers are noticing the impact of lower fuel prices. In August, for the second month in a row, the product price increase was slightly lower than a month earlier.

However, the costs companies incur to purchase raw materials, and other materials are still high.

US producer prices fell 0.1 percent month-on-month in August. However, compared to the summer of 2021, companies, on average, still charge 8.7 percent more for their goods, according to data from the US government. Excluding the strongly fluctuating prices for energy and food, prices rose by 0.4 percent monthly. On an annual basis, this was an increase of 7.3 percent.

The producer price figures follow disappointing inflation figures. Monetary depreciation in the world’s largest economy turned out higher than expected, and that could prompt the US central bank umbrella Federal Reserve to continue raising interest rates aggressively. The Fed has already raised interest rates several times to tackle inflation.

Interest rates may be raised even more sharply next week than with previous interest rate measures. As a result, there are fears in the financial markets that strong interest rate hikes could lead to an economic recession.

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