US producer prices fell 0.1% in August compared to the previous month, missing economists’ expectations of a 0.3% increase and marking a sharp reversal from July’s 0.9% gain.

The Producer Price Index decline suggests inflationary pressures at the wholesale level may be easing, providing potential relief for businesses and consumers downstream. The August reading represents the first monthly decrease in producer prices since earlier this year.

The weaker-than-expected data could influence Federal Reserve policy decisions as officials continue to monitor inflation trends across the economy.