There is no evidence of inflationary developments in the wholesale pricing report.

Economists had estimated that PPI for final demand fell 0.1% month-on-month and 0.9% year-on-year.

The University of Michigan is due to release the results of its preliminary consumer sentiment survey for September at 10 am ET. The drag on producer prices from lower crude oil prices and a strong dollar was offset by an increase in profit margins for apparel, footwear and accessories retailing.

In the 12 months through August, the PPI fell 0.8% after a similar decline in July. Energy expenses dropped 3.3 percent, with gasoline decreasing 7.7 percent, the biggest decline since January. Tepid wage growth and dollar strength have combined to keep inflation well below the Fed’s 2 percent target.

The central bank’s committee for policy setting will meet for two days next week.

Asian stock markets mostly fell Friday but ended a volatile week in relative calm after China unveiled a series of steps to shore up its economy and reassure investors, although fears of a U.S. rate hike kept nerves on edge.

Stocks on Wall Street were trading lower on the data.

“While US dollar strength and lower oil prices will continue to weigh on prices in the near-term, inflation is expected to rebound gradually as the economy continues to build momentum”, Daco said.

Gold prices were flat Friday morning ahead of US inflation data.

Prices of services rose 0.4 per cent in August, driven largely by rising retailing costs in apparel, footwear and accessories.

Excluding food and energy prices, the core producer price index rose by 0.3 percent in August, matching the increase seen in the previous month. There also were decreases in the cost of jet fuel, grains, light motor trucks, and iron and steel scrap.

London’s benchmark FTSE 100 index slipped 0.19 percent to stand at 6,144.29 points in late morning deals after opening with slight gains.

Changes in wholesale costs are eventually reflected in the price of consumer goods and services, but the relationship is not exact.

Excluding food and energy and also eliminating trade services to arrive at a reading that some economists prefer because it strips out another of the most volatile components of PPI, costs rose 0.1 percent after rising 0.2 percent in July.