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.
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.
