US Producer Prices Rise Most in Three Months on Energy Surge
A measure of producer price inflation showed renewed pressure from rising energy prices last month, potentially adding to the case for an interest-rate hike at the Federal Reserve’s meeting next week. The producer price index rose 0.4% in August from the prior month — the most since May — and 5.4% from a year earlier, according to Bureau of Labor Statistics data out Thursday. Excluding food and…
Producer price inflation surged last month due to a spike in energy prices, according to the latest data from the Bureau of Labor Statistics. The producer price index increased by 0.4% in August compared to the previous month, marking the highest level since May. Moreover, the index rose by 5.4% year-over-year, the most significant increase in three months. When food and energy prices are excluded, the gauge expanded by 0.2% in August and 4.6% compared to a year ago.
The recent figures were released a day before the latest update to the consumer price index, which is anticipated to reveal relatively tame core inflation despite the impact of higher gasoline prices on the headline measure. Fed officials have hinted that their decision on interest rates during the Sept. 15-16 meeting could hinge on the insights provided by this week's reports. Anna Wong, Chief US Economist for Bloomberg Economics, shared her thoughts on the matter.
Written by urgent.news from Bloomberg's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
