United States (US) producer prices fell marginally in August 2018, recording its first decline in 18 months. The US producer-price index (PPI), a measure of the prices businesses received for their goods and services, declined by 0.1% month-over-month (MoM) and was below market expectations of a 0.2% MoM gain. This decline was largely driven by a decline in the prices of food and a range of trade services which offset an increase in the cost of energy products. However, the core PPI which excludes food, energy and trade increased by 0.1% month over month, which resulted in the annualized core PPI increasing to 2.9%. Despite the marginal decline in producer prices, the annual inflation rate for core PPI and Consumer Price Index (CPI) continues to be at a steady level. It is anticipated that inflationary pressures linked to the strengthening US economy and low unemployment levels, will likely lead to higher prices in the shortterm. Additionally, the ongoing trade war between the US and China, is also anticipated to impact prices as producers continue to see declining margins as a result of higher input costs associated with the recent tariffs.