The U.S. Producer Price Index (PPI) jumped sharply in August, the Labor Department reported on Thursday.
Wholesale prices rose 1.7% last month, the government said. That marked the largest increase in producer prices in three years, Bloomberg noted.
It also topped the 1.2% gain that economists had forecast.
August’s rise follows a much more modest gain of just 0.3% in July.
Spiraling oil costs drove last months increase, with energy prices showing their biggest gain in three years. Finished food prices also rose by 0.9%, their largest rise since last year. Car prices slipped 0.2%.
Core PPI, which omits energy and food prices, edged up just 0.2%. That matched economists’ estimates.
Analysts said that August’s PPI increase would likely not influence economic decisions by the Federal Reserve because since prices outside of energy were mostly stable.