US Producer Prices Rise 0.4% in August Amid Energy Cost Rebound
US producer prices rose by 0.4% in August, meeting economists' expectations after a revised 0.1% gain in July.
The Labor Department's Bureau of Labor Statistics reported that energy costs rebounded with a 4.2% increase last month, providing the biggest boost to the overall reading.
Wholesale food prices edged up 0.1% after falling 0.9% in July, while producer goods prices surged 1.1% during the month and rose 0.4% excluding food and energy.
The core PPI increased 0.2%, below economists' expectations for a 0.3% rise, but services prices increased 0.1% with several components recording stronger gains.
The data comes as investors and economists assess whether inflation remains too high for the Federal Reserve to ease policy aggressively, even as the central bank weighs labor-market conditions.