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U.S. producer prices unexpectedly fell in August amid a compression in trade services margins and mild increase in the cost of goods, suggesting that domestic businesses were probably absorbing some of the tariffs on imports. The lack of strong producer price pressures, despite import duties, could also be signaling softening domestic demand against the backdrop of a struggling labor market. The Federal Reserve is expected to cut interest rates next Wednesday, with a quarter-percentage-point reduction fully priced in, after pausing its easing cycle in January because of uncertainty over the impact of President Donald Trump’s sweeping tariffs. “Inflation barely has a heartbeat at the producer level which shows the tariff effect is not boosting across-the-board price pressures yet,” said Christopher Rupkey, chief economistat FWDBONDS. “As time goes on one has to wonder if there are slow-growth reasons and weak economic demand that is keeping inflation in check. There is almost nothing to stop an interest rate cut from coming now.” The Producer Price Index for final demand dipped 0.1% last month after a downwardly revised 0.7% jump in July, the Labor Department’s Bureau of Labor Statistics said on Wednesday. Economists polled by Reuters had forecast the PPI would advance 0.3% after a previously reported 0.9% surge in July. A 0.2% drop in the prices of services accounted for the fall in the PPI. That followed a 0.7% rebound in July. Services were last month held down by a 1.7% decline in margins for trade services, reflecting a 3.9% decrease in margins for machinery and vehicle wholesaling. But the cost of services less trade, transportation and warehousing increased 0.3% while prices for transportation and warehousing services shot up 0.9%. Portfolio management fees increased 2.0%. Airline fares rose 1.0% while the cost of hotel and motel rooms increased 0.9%. Prices for dental services accelerated 0.6%. Goods prices edged up 0.1% after increasing 0.6% in the prior month. Food prices gained 0.1%, with declines in the costs of eggs and fresh fruits partially offsetting more expensive beef and coffee because of tariffs. Wholesale beef prices surged 6.0% while those for coffee vaulted 6.9%. Energy prices fell 0.4%. Excluding the volatile food and energy components, producer goods prices rose 0.3% after climbing 0.4% in July, indicating some pass through from tariffs. In the 12 months through August, the PPI increased 2.6% after climbing 3.1% in July. Economists are expecting price pressures from tariffs to lift consumer inflation in August. U.S. stocks opened higher. The dollar eased against a basket of currencies. U.S. Treasury yields fell. Labor market weakness has raised concerns that the economy was stagnating. The government estimated on Tuesday that the economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated. That data followed the release last Friday of the monthly employment report, which showed job growth almost stalled in August and the economy shed jobs in June for the first time in four and a half years. Lucia Mutikani, Reuters
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E-Commerce
The 2026 FIFA World Cup, expected to be the world’s largest sporting event in recent history, is less than a year awayand the presale ticket draw is now live. The long-awaited tournament is set to unfold in North America and will be the first World Cup played across three countries, with 16 host cities across the U.S., Mexico, and Canada. In addition to making history for its multi-national hosting, this World Cup will also feature an expanded roster, with 48 teams playing instead of the previous 32-team format. Starting this month, fans are already queuing for a chance to score a ticket and watch their countries and favorite players compete against one another. How can I buy FIFA World Cup tickets? World Cup tickets are set to be sold in three phase, with the first phase kicking off on now. The first phasethe Visa Presale Drawwill run from September 10 through September 19, for valid Visa cardholders. Opening at 11 a.m. ET, the application period will enter a presale draw for a chance to buy tickets later the month. Successful applicants, who are randomly selected, will be notified starting September 29, who will receive a time and date in October to purchase tickets. Tickets will be made available for the 104 matches in all 16 cities, and will be sold on a first-come, first-served basis. Still, FIFA notes that receiving an allotted buying time does not guarantee tickets will be available. Phase twothe early ticket drawis set to begin with registration on October 27, going through October 31. Like with the first phase, fans will register to a draw for a chance to buy tickets. Successful draws will be able to purchase a limited amount of tickets starting mid-November. Phase threethe random selection drawwill work similarly to the previous draws, but will be held once the match set is set, and the 48 countries have been selected. Who are the host cities? The 2026 FIFA World Cup matches will be held in the following 16 cities throughout North America, with the inaugural game held in Mexico City and the final match set for MetLife Stadium in New Jersey. United States: Atlanta Boston Dallas Houston Kansas City Los Angeles Miami New Jersey/New York Philadelphia Seattle San Francisco Mexico: Mexico City Guadalajara Monterrey Canada: Toronto VAncouver
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There’s good news for prospective home buyers and current home owners. Mortgage rates have ticked down in recent weeks. Unsurprisingly, the downtrend has caused the number of mortgage applications to surge, while benefitting current home owners. According to a Sept. 10 Mortgage Bankers Association (MBA) press release, loan applications increased 9.2 percent on a seasonally adjusted basis last week from the week prior. Applications for refinancing were up 12%, too, from the previous week, and were a whopping 34% higher than the same week one year ago. Joel Kan, MBAs Vice President and Deputy Chief Economist, explained in the release that the dropping interest rates are a sign of a weakened labor market, noting that the 30-year fix rate dropped to 6.49 percent the lowest since last October. The downward rate movement spurred the strongest week of borrower demand since 2022, with both purchase and refinance applications moving higher. Purchase applications increased to the highest level since July and continued to run more than 20 percent ahead of last years pace.” Added Kan, The holiday-adjusted refinance index had its strongest week in a year and the average loan size for refinances also increased significantly, since borrowers with large loans are more sensitive to bigger rate moves. Refinance applications accounted for almost 49 percent of all applications last week. The refreshing numbers come as many prospective home buyers have seemed to accept higher interest rates as a new reality. According to a recent TurboHome-ResiClub Housing Sentiment Survey, in Q1 2025, 41% of homeowners said theyd accept a mortgage rate up to 6.0% on their next purchase. By Q3, the number was up to 52%. While the new report is certainly good news for those hoping to buy a new home, the 30-year fixed is still 20 basis points higher than it was a year ago. At the time, rates were dropping due to weaker than expected employment numbers.
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E-Commerce
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