U.S. producer prices were unchanged in September as a modest rise in the cost of services was offset by cheaper goods, pointing to a still-favorable inflation outlook and supporting views that the Federal Reserve would cut interest rates again next month.

The producer price index (PPI), which measures changes in the prices of goods and services from a producer's perspective, was estimated to show a monthly gain of 0.1% in September. The figure showed a 0.2% month-on-month increase in August.

US wholesale prices were unchanged in September, according to government data published Friday, as a small rise in the cost of services was offset by falling goods prices.