Thursday, February 6, 2014

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Producer Prices Rose 1 7 in August

Producer prices saw their largest monthly gain in three years in August, jumping 1.7%. August’s unexpected price increases were primarily driven by higher energy and food costs, as core finished goods only appreciated 0.2%. Prices are now 2.0% above year-ago levels, up from the 0.5% seen in July.



Prices at the earliest stages of production also surged, rising 2.2% over the month. Despite the strong appreciation in August, prices on crude goods are down 10.2% from year-ago levels.

Input costs are not expected to maintain the rapid appreciation seen in August, as the global economic slowdown will likely keep inflation moderate.

Read the BLS report.