U.S. producer prices rose in July by less than forecasted

U.S. producer prices rose in July by less than forecasted، reflecting an ongoing moderation in inflationary pressures.

The producer price index increased 0.1 per cent from a month earlier. Economists were forecasting a 0.2 per cent gain. The result gave U.S. stock market futures a boost، and caused traders to increase their bets that the U.S. Federal Reserve will cut interest rates at its next meeting. The wholesale inflation numbers precede the more closely-watched consumer price index، which is expected to show a modest increase in data due Wednesday.

Meanwhile، cautious behaviour from consumers is showing up in the latest results from Home Depot: The home-improvement retailer lowered its forecast of a key sales metric for the year on expectations that consumers will continue to hold back spending in the coming months. The retailer says it now sees comparable sales falling three to four per cent for the year. In the quarter just ended، comparable sales fell 3.3 per cent، the seventh straight quarter of declines. Adjusted profit came in above analysts’ estimates.