The number of Americans filing new applications for unemployment benefits increased marginally last week, suggesting that layoffs remained low even as the labor market is slowing. Other data from the Labor Department on Thursday showed producer prices rising slightly more than expected in August amid a rebound in the cost of services.

The Federal Reserve is set to cut rates next week, but that does not mean a reversal of the high prices of the past three years.

U.S. consumer prices rose slightly in August, but underlying inflation showed some stickiness amid higher costs for housing and other services, further dashing hopes of a half-point interest rate cut from the Federal Reserve next week.

Trends elevated the chance of a quarter-point rate cut next week and decreased the probability of a 50 basis point reduction.

Inflation cooled further in August, falling to a three-year low and cementing views that the Federal Reserve will soon start cutting interest rates. Martin Baccardax, senior editor and chief markets correspondent for the Street,

Airline tickets and eating out cost more in August than July. But price gains are easing in other previously sticky industries.