US Wholesale Prices Rise in August Amid Soaring Diesel Costs
Wholesale prices in the US rose by 0.4% in August, according to the Bureau of Labor Statistics' producer price index (PPI) report released on Thursday.
This increase is in line with market expectations and puts PPI at 5.4% on an annual basis, well above the Federal Reserve's 2% inflation target.
The core PPI, which excludes food and energy prices, accelerated by 0.2%, slightly lower than the predicted 0.3% increase.
Energy prices were a major contributor to the rise in wholesale costs, with final-demand energy prices increasing 4.2% due to soaring diesel prices, up 24.1%. Goods prices also rose broadly, by 1.1%.
The report's release coincided with US crude oil prices topping $100 a barrel, causing stock market futures to turn negative and Treasury yields to move sharply higher.