US Producer Prices Rise 5.4% Annually as Energy Costs Surge 24.1%
The US Bureau of Labor Statistics reported that producer prices increased by 5.4 percent in the year ending August, driven primarily by a massive jump in energy costs.
US producer prices rose 5.4 percent over the 12 months through August, accelerating compared to July and exceeding some market forecasts. The Bureau of Labor Statistics released seasonally adjusted data on Thursday showing the Producer Price Index for final demand up 0.4 percent from the previous month. This annual increase surpassed the roughly 5.3 percent rate anticipated by several forecasters. The August figure marked a clear acceleration from July, when final-demand producer prices had increased 4.7 percent year-over-year. Goods prices accounted for the majority of the August gain. The index for final-demand goods advanced 1.1 percent during the month, driven largely by a 4.2 percent jump in energy prices. Diesel fuel prices surged 24.1 percent from July, while gasoline, jet fuel, and home-heating oil also moved higher. More than one-third of the increase in final-demand goods was attributed to diesel fuel, government data showed. Food prices rose only 0.1 percent, limiting some pressure from energy costs. Prices for goods excluding food and energy also increased. Services prices were comparatively subdued, rising 0.1 percent in August.
