Core Insights - The Producer Price Index (PPI) for August decreased by 0.1% month-on-month, marking the first decline in four months [1] - Service costs were the main drag, falling by 0.2%, the largest drop since April 2025 [1] - Year-on-year, the PPI rose by 2.6%, lower than the revised previous value of 3.1% and market expectations of 3.3% [1] Service Sector Analysis - The wholesale profit margin for machinery and vehicles dropped significantly by 3.9% [1] - Prices in various service sectors, including professional commercial equipment wholesale, chemicals, furniture retail, alcoholic beverages retail, and data processing, also declined [1] Goods Sector Analysis - Prices for final demand goods increased by 0.1% month-on-month, marking the fourth consecutive month of growth [1] - Tobacco products saw a price increase of 2.3%, leading the rise among various goods [1] - Other goods such as beef, processed poultry, printed circuit components, and electricity also recorded price increases [1] Core PPI Insights - The core PPI, excluding volatile food and energy categories, decreased by 0.1% month-on-month, below the expected increase of 0.3% [1] - The year-on-year increase for core PPI fell to 2.8%, also lower than the market expectation of 3.1% [1] Inflation Dynamics - There is a structural divergence in inflation dynamics, with persistent upward pressure on goods prices while service prices are declining [1]