US producer prices rise 0.4 per cent in August as energy jumps 4.2 per cent
US final-demand prices rose 0.4 per cent in August and 5.4 per cent from a year earlier. Goods prices increased 1.1 per cent and services 0.1 per cent. A 24.1 per cent rise in diesel helped lift energy prices 4.2 per cent, while the measure excluding food, energy and trade services rose 0.3 per cent on the month.
Economics & Markets··Night
Final-demand prices rise 0.4 per cent on the month
The US Bureau of Labor Statistics said the producer price index for final demand rose a seasonally adjusted 0.4 per cent in August. The annual increase was 5.4 per cent, which Associated Press reported was up from 4.8 per cent in July. Goods prices increased 1.1 per cent on the month while services prices rose 0.1 per cent. The measure excluding food, energy and trade services increased 0.3 per cent for the month and 4.7 per cent over the year.[1], [2]
Energy prices jump 4.2 per cent
Energy supplied much of the increase in goods prices. Final-demand energy prices rose 4.2 per cent in August, with diesel fuel up 24.1 per cent, while residential electricity fell 0.5 per cent. Associated Press reported that higher oil and gas prices had renewed the acceleration in wholesale inflation. Annual producer inflation had reached its high for the year at 5.9 per cent in May after the Iran conflict lifted energy costs. The August reading remained below that peak but above July's annual rate.[1], [2]
Headline growth is more than twice the core measure
The 0.4 per cent monthly headline increase was twice the 0.2 per cent core increase excluding food and energy. The broader measure that also excludes trade services rose 0.3 per cent, showing how the energy category widened the gap. Final-demand food prices also increased 1.4 per cent. The figures measure price movements faced by producers and do not mean consumer prices changed by the same amount. They do, however, locate the August acceleration clearly in the distribution between energy, goods and services.[1]
