Inflation, as measured by the producer price index, declined four-tenths of a percentage point to 1.7% for the year ending in August, the Bureau of Labor Statistics reported on Thursday.

The decline in inflation, which was anticipated by forecasters, is good news for the Federal Reserve and Vice President Kamala Harris as she campaigns for president. Annual PPI inflation fell slightly more than economists had expected.

On a month-to-month basis, the wholesale price index rose by 0.2%.

The producer price index is not as closely watched as the consumer price index, which was updated Wednesday and showed inflation falling four-tenths of a percentage point to 2.5% for the year in August, marking five months of disinflation.

Inflation, as tracked by the CPI, is now the lowest it has been since February 2021, shortly after President Joe Biden was sworn in.

While, on balance, inflation has been falling, the labor market has recently shown signs of slowing — a concerning development for the economy. The labor market will likely become an even more salient political topic if it keeps worsening in the lead-up to the November elections.

The economy added 142,000 jobs in August, reflecting a downward trend in job creation in recent months. The unemployment rate is now 4.2%, an increase from recent lows of 3.4%.

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In another sign that the labor market is cooling, job openings plunged in July to their lowest level since January 2021, when Biden entered office.

The economy, specifically inflation, has been the biggest issue for voters this cycle. Republicans blame years of cumulative inflation on the Biden administration and are working to handcuff Harris to the administration’s low economic approval ratings.