US PPI Surges 5.4% YoY as Energy Prices Soar, Treasury Yields Climb

US producer price index (PPI) data for August revealed a significant increase in prices. According to the US Bureau of Labor Statistics, the PPI rose 0.4% month-over-month and 5.4% year-over-year.

The year-over-year growth was higher than the expected 5.3%, driven mainly by energy prices. The final demand goods prices surged 1.1% month-over-month, with energy prices jumping 4.2% and diesel fuel prices rising 24.1%.

However, the core measure of PPI growth moderated compared to July, but its year-over-year growth remained at an elevated level of 4.7%. The rebound in headline PPI year-over-year growth was also mainly driven by energy prices.

The release of the PPI data led to a rise in US Treasury yields, with the 10-year Treasury yield climbing 5.63 basis points to 4.893%, and the 2-year U.S. Treasury yield gaining 5.96 basis points to 4.487%. The 30-year U.S. Treasury yield also rose to 5.3381%.

In commodities, Brent crude futures broke above $105 per barrel, surging over 4% on the day. Gold futures tumbled over 1%, trading at around $4,363 per ounce as of press time.