In August, the producer price index surged by a seasonally adjusted 0.7%, surpassing the anticipated 0.4% increase and marking the most significant monthly rise since June 2022. Nevertheless, when excluding food and energy, core PPI experienced a more modest increase of 0.2%, aligning with the expected figure.
This data follows a day after the more closely monitored consumer price index (CPI) reported a monthly increase of 0.6% and a year-over-year rise of 3.7%. When excluding food and energy, the core CPI showed a monthly increase of 0.3% and a year-over-year increase of 4.3%.
Similar to the CPI, the upward pressure on the producer price index (PPI) was primarily driven by a significant surge in energy prices, with the PPI energy index rising by 10.5% in the month, primarily due to a 20% jump in gasoline prices. I
n August, final demand goods prices registered a notable 2% increase, marking the most substantial one-month gain since June 2022, while service prices saw a more modest increase of 0.2%.
(Source: CNBC)
