U.S. wholesale prices in August rose 0.4% from the prior month, driven by gains in goods such as diesel.
According to the Bureau of Labor Statistics under the Labor Department on the 10th (local time), the August PPI rose 0.4% from the previous month. That matches the 0.4% consensus compiled by Reuters, but the increase was larger than in July (0.1%).
Year over year, it rose 5.4%, topping the market forecast of 5.3% and accelerating from July (4.8%). U.S. business outlet CNBC said it "still far exceeds the Federal Reserve's 2% inflation target."
Goods prices in August climbed 1.1% from a month earlier, leading the overall trend. In particular, diesel prices surged 24.1%. Service prices rose 0.1% overall, as transportation and warehousing fees increased 2.3%.
The Producer Price Index (PPI), also known as wholesale prices, is considered a leading indicator for the Consumer Price Index (CPI) because it is reflected in final consumer prices with a time lag. The August CPI is scheduled to be released on the 11th and is expected to have risen 3.4% from a year earlier.