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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.

Consumer prices rose 0.6% in August, their first positive reading in five months. Prior to today’s report, consumer prices had failed to appreciate since March, with the majority of the readings showing stagnant prices. August’s gain of 0.6% is the largest monthly gain in three years. Consumer prices are now 1.7% above year-ago levels.



August’s gain was driven primarily by surging energy prices, which rose 5.6% over the past month. Energy prices had receded for four consecutive months prior to August.

Core prices rose at a more moderate, but strong pace of 0.2%, up from 0.1% the previous month. Core appreciation was entirely due to a 0.1% rise in service prices, as goods prices declined 0.2%.

Read the BLS report.