The Producer Price Index saw its largest jump in more than a year when it increased 0.7% in August (seasonally adjusted) after rising 0.4% in July, the U.S. Bureau of Labor Statistics reported Sept. 14.
The August advance is the largest increase in final demand prices since moving up 0.9% in June 2022.
On an unadjusted basis, the index for final demand rose 1.6% for the 12 months ended in August. In August, 80% of the rise in final demand prices is attributable to a 2.0% jump in the index for final demand goods.
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Prices for final demand services advanced 0.2%. The index for final demand less foods, energy, and trade services increased 0.3% in August, the same as in July. For the 12 months ended in August, prices for final demand less foods, energy, and trade services rose 3.0%, the largest advance since moving up 3.4% for the 12 months ended in April, according to BLS data.
The index for final demand goods jumped 2.0% in August, the largest advance since increasing 2.1% in June 2022. The August rise is mostly attributable to prices for final demand energy, which surged 10.5%. The index for final demand goods less foods and energy edged up 0.1%. In contrast, prices for final demand foods declined 0.5%.
Alongside the PPI, the Consumer Price Index rose 0.6% in August on a seasonally adjusted basis after increasing just 0.2% in July, the bureau said Sept. 13. Over the past 12 months, the all-items index increased 3.7% before seasonal adjustment, up from 3.2% in July.