The median estimates in a Bloomberg survey of economists called for a 0.2% monthly increase in the PPI and a 0.3% rise in the core.
The unemployment rate unexpectedly dropped to 3.5%, matching a five-decade low.
But the level of applications remains low and continues to signal a robust labor market.
There are some 1.7 jobs for every unemployed person, down from about 2 in July.
The value of equity holdings slumped $7.7 trillion, while the value of real estate held by households rose by $1.4 trillion.
The U.S. labor market remains strong, but may be loosening as people return to the workforce.
Forecasts call for a healthy, yet more moderate 298,000 gain in August payrolls.
Bad news in the labor market may be good news for investors during the Fed's inflation fight.
There were about two jobs for every unemployed person in July.
Purchases of goods and services, adjusted for changes in prices, increased 0.2% after being flat a month earlier.