U.S. producer prices increased in August as sharply higher energy costs drove the largest monthly advance since May, according to data released Sept. 10 by the U.S. Bureau of Labor Statistics.

The Producer Price Index (PPI) for final demand rose a seasonally adjusted 0.4% from July, matching the consensus estimate among economists surveyed by FactSet and Reuters. July’s result was revised upward to a 0.1% gain from the initially reported flat reading.

On an unadjusted basis, producer prices increased 5.4% over the 12 months through August, accelerating from a revised 4.8% annual increase in July. The latest figure was slightly above market expectations of 5.3%.

Goods prices rose 1.1% in August following two consecutive monthly declines. More than three-fourths of the increase was attributable to a 4.2% jump in energy prices. Diesel fuel prices surged 24.1% and accounted for more than one-third of the overall goods increase. Prices for gasoline, jet fuel and home heating oil also advanced.

Excluding food and energy, goods prices increased 0.4%, while food prices edged up 0.1%.

Prices for final demand services rose 0.1% for their third consecutive monthly increase. Transportation and warehousing services prices increased 2.3%, led by a 2% gain for truck freight transportation. Trade services prices declined 0.2%, while services excluding trade, transportation and warehousing were unchanged. The machinery and equipment wholesaling index also decreased.

Core PPI, which excludes food and energy, rose 0.2% from July, below the 0.3% consensus estimate, and increased 4.6% year over year. The index for final demand excluding food, energy and trade services rose 0.3% during August and 4.7% from a year earlier.