📉 Wholesale inflation dipped in August—and it could signal a shift.
For the first time in four months, the U.S. Producer Price Index ticked down (-0.1%), driven largely by a sharp drop in machinery and vehicle wholesaling margins. Core PPI also declined, suggesting softening inflation at the wholesale level.
With the Federal Reserve set to make its next move on interest rates soon, this data could influence a long-anticipated rate cut—potentially lowering borrowing costs and reshaping distributor cash flow forecasts heading into Q4.
📊 The key takeaway for distributors: Stay alert. Falling wholesale inflation might ease margin pressure, but now’s the time to fine-tune pricing strategies and inventory planning.
Read more with MDM Distribution Intelligence
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