(Bureau of Labor Statistics) US producer prices rose by 0.7% in August to fuel further inflationary pressures amid constrained supply chains and the Covid-19 pandemic. The increase was higher than the expected monthly gain of 0.6%.
PPI is now up for three consecutive months, after recording a gain of 1.0% in June and July
Services recorded a monthly increase of 0.7%, a lower increase compared to a 1.1% gain in July. Final demand goods were up 1.0%.
Less food, energy, and trader services, prices increased by 0.3% in August, less than a gain of 0.9% in July. The index was up 6.3% in the 12 months to August, the largest gain in seven years.
On a year-over-year basis, PPI was up by 8.3% in August, the biggest annual gain in almost 11 years.
The uptick in inflation reflected continued supply chain challenges, material shortages, and difficulties in staffing.
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