Producer prices during the month of August were much weaker than expected, as the headline reading fell 1.4 percent during the month, dragging the annualized rate down to a seven-month low of 2.2 percent. Meanwhile, prices at the factory gate excluding food and energy rose in line with expectations at a rate of 0.2 percent from the month prior. A breakdown of the data shows that gas led declines, as gasoline prices plummeted 13.8 percent during the month while residential gas tumbles 8.5 percent. On the other hand, food prices kept the headline reading slightly elevated, as they rose 0.3 percent during the month. Overall, this morning’s report signals that price pressures not be building significantly in the pipeline, which should give the Federal Reserve additional leeway to cut rates this afternoon at 14:15 EST.