U.S. producer prices were unchanged in September as a small rise in the cost of services was offset by cheaper goods, pointing to a still-favorable inflation outlook and supporting views that the Federal Reserve would cut interest rates again next month.

Wholesale prices in the United States were unchanged last month in another sign that inflation is returning to something close to normal after years of pressuring America’s households in the wake of COVID-19.

Economist Paul Ashworth of Capital Economics noted in a commentary that Friday's report on producer prices suggested the September PCE inflation index would increase by 0.2 percen