Wholesale inflation ticked up last month, exceeding expectations
The Bureau of Labor Statistics reported Thursday that wholesale inflation increased for the second consecutive month, mirroring the trend in the Consumer Price Index report.
As a result of price changes at the wholesale level, the Producer Price Index rose to 1.6% from 1.3% for the 12 months ending in August.
Producer prices increased 0.7% from 0.3% in July, a month-to-month increase. This was higher than economists’ expectations of a 0.4% rise. The increase in August was the largest one-month increase since June 2022.
August’s overall acceleration was largely driven by a 10.5% increase in energy prices, which led to a 2% rise in final demand for goods. The final demand for services, however, rose by 0.2%. Previously, service-side inflation had driven the index higher.
In August, core PPI rose 2.2% on an annual basis, in line with economists’ expectations.
As compared to July’s revised 0.4% gain, core PPI leveled off slightly in August, rising by 0.2%. According to economists, this was also expected.