US producer prices rise 0.4pc in August as energy and freight costs weigh

(Sharecast News) - US producer prices rose in August, according to the Bureau of Labor Statistics, with the PPI for final demand up 0.4% month‑on‑month and 5.4% year-on-year. Prices for final demand goods increased 1.1%, driven largely by a broad rise in energy costs, which were up 4.2%, while goods excluding food and energy rose 0.4%, and food prices edged 0.1% higher.

The BLS said more than a third of the monthly increase in goods prices reflected a 24.1% jump in diesel fuel, with gasoline, jet fuel, heating oil, candy and nuts, and tobacco products also higher.

The final demand services index rose 0.1%, marking a third straight monthly gain.

Transportation and warehousing services climbed 2.3%, led by a 2% rise in truck freight rates, while airline passenger services, legal services, hospital inpatient care and partial auto retailing also increased.

Trade services, on the other hand, slipped 0.2%, while margins for fuels and lubricants retailing dropped 11.3%.

Excluding food, energy and trade services, so-called core PPI rose 0.3% in August, following a 0.4% increase in July, leaving the annual rate of increase at 4.7%.





Reporting by Iain Gilbert at Sharecast.com