US producer prices fell in August, reinforcing a weaker inflation outlook just a day after major revisions showed US employment levels overstated by nearly one million jobs.

The Bureau of Labor Statistics reported that the Producer Price Index declined 0.1 percent on the month, below forecasts for a 0.4 percent increase. Core PPI also fell 0.1 percent, with annual readings slowing to 2.8 percent from 3.4 percent in July.

The release follows last week’s data showing August nonfarm payrolls added only 22,000 positions, while unemployment rose to 4.3 percent. A separate benchmark revision revealed total employment had been overstated by 911,000 jobs, bringing the cumulative downward adjustment over the past year to 1.5 million.

Treasury Secretary Scott Bessent said the corrections showed the Federal Reserve maintained restrictive policy based on incomplete data.

Average hourly earnings rose 0.3 percent on the month and 3.7 percent from a year earlier, matching forecasts.

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Combined with revised productivity figures showing a 3.3 percent gain in the second quarter and unit labor costs up just 1 percent, the inflation backdrop has eased. Still, services inflation remains firm, with the ISM prices index near 69 in August.

Markets rallied on the softer PPI print, viewing it as support for Federal Reserve rate cuts at the September policy meeting.

Bitcoin rose 1.1 percent to $113,449, while Ethereum gained 1.2 percent to $4,372. The S&P 500 climbed 0.34 percent to $654, extending earlier gains as investors priced in easier financial conditions.