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US PPI accelerates in August as energy costs drive higher prices
Final-demand producer prices rose 0.4% month over month, while energy lifted more than three-quarters of the goods increase and diesel fuel jumped 24.1%.
US producer prices accelerated in August, with final-demand PPI increasing to 0.4% month over month, up from 0.1% in the prior period, matching market consensus. On an annual basis, the final-demand PPI rate reached 5.4%, slightly above the 5.3% forecast, according to Action Forex’s summary of the Bureau of Labor Statistics release.
The report also showed that core momentum softened. The measure excluding food, energy, and trade services eased from 0.4% to 0.3% month over month, but remained elevated at 4.7% year over year.
Energy was the main driver of the monthly goods jump, with goods swinging from -0.4% to +1.1% month over month and energy accounting for more than three-quarters of that increase. Within energy, diesel fuel prices rose 24.1%, Action Forex noted, while food prices edged up 0.1%.
Beyond the final-demand headline, upstream inflation pressures were also evident. Intermediate-demand prices reversed toward growth, with processed goods for intermediate demand rising 1.8% month over month and up 11.5% year over year, and unprocessed intermediate goods accelerating to 1.1% month over month and 12.8% year over year.