Inflationary pressures are moderating according to the Producer Price Index (PPI). According to last week’s release from the Bureau of Labor Statistics, U.S. producer prices rose by 0.1% month-over-month in July.  One year ago, the index stood at 2.2%.

PPI is viewed as a leading economic indicator as it helps predict inflation before it hits consumers. PPI is considered an input to fiscal and monetary policies and economists now see greater odds of an interest rate cut in September.