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August Producer Prices Rise More Than Expected

The index rose the most in three years on higher energy costs


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.

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