US Producer Inflation Jumps to 5.4% in August Driven by Energy Costs
Producer prices for final demand rose 5.4 percent annually in August, the Bureau of Labor Statistics confirmed on Thursday. Energy costs surged sharply, with diesel fuel prices jumping 24.1 percent from July.
The Producer Price Index for final demand increased 0.4 percent from July on a seasonally adjusted basis, according to the Bureau of Labor Statistics. The annual rise reached 5.4 percent, exceeding forecasts of roughly 5.3 percent and accelerating from July's 4.7 percent increase. Goods prices accounted for most of the growth, as the index for final-demand goods advanced 1.1 percent in August. Energy prices drove this advance, with a 4.2 percent jump in the sector overall. Diesel fuel prices surged 24.1 percent from July, contributing more than one-third to the total increase in goods costs. Gasoline, jet fuel, and home-heating oil also moved higher. Food prices rose only 0.1 percent, limiting pressure on other goods. Services prices were comparatively subdued, rising 0.1 percent in August.
