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Producer prices in the US economy rose by slightly more than expected in August, as reported by the Labor Department on Friday.
Source: US Department of Labor
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The producer price index for final demand increased by 0.7% in August jumping by 1.0% for two consecutive months. Economists had expected producer prices to rise by 0.6%.
The bigger than anticipated increase in producer prices was partly due to a rebound in food prices, which rose by 2.9% in August after declining by 2.1% in July.
Prices for trade services also showed a significant increase, rising by 1.5% in August after surging up by 1.7% in July.
The core producer prices, excluding food, energy, and trader service prices, rose by 0.3% in August following July’s 0.9% percent increase. Core prices were expected to increase by 0.4%.
The report revealed a continued increase in prices for transportation and warehousing services, which increased by 2.8% in August after increasing by 2.7% in July.
With another monthly increase, the annual growth rate in producer prices increased to 8.3% in August from 7.8% in July, reflecting the largest increase since November 2020.
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