U.S. producer prices unexpectedly fell in August, the first drop in 18 months, on declines in costs for services and foods, a Labor Department report showed Wednesday in Washington.

Producer-price index dropped 0.1% m/m (est. 0.2% rise) after no change in prior month; up 2.8% y/y, least since Feb. (est. 3.2%) after 3.3% gain.

Excluding food and energy, core gauge fell 0.1% m/m (est. 0.2% rise); up 2.3% y/y (est. 2.7%) after 2.7%.

PPI excluding food, energy, and trade services, a measure some economists prefer because it strips out the most volatile components, rose 2.9% y/y after 2.8% in July.

Source : Bloomberg