Washington — US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate hike. Other data on Thursday showed an increase in the number of Americans filing for unemployment benefits last week. The trend in weekly jobless claims, however, remained consistent with a tightening labour market. "Another twist of the screw tighter for this labour market but inflation is not able to gain a foothold in this economy," said Chris Rupkey, chief economist at MUFG in New York. "The pot is on the stove boiling but no inflation steam is coming out." The Labour Department said its producer price index for final demand slipped 0.1% last month, weighed by decreasing costs for services. That was the largest decline since August 2016 and reversed June’s 0.1% gain. In the 12 months through July, the PPI increased 1.9% after rising 2% in the year through June. Economists had f...
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