Prices charged by U.S. businesses jumped higher than expected in August, data from the Department of Labor said Friday.
The Bureau of Labor Statistics’ Producer Price Index rose 0.7 percent compared with July. Compared with a year ago, the index is up 8.3 percent, the fastest pace of price increases in data going back to 2010.
Economists had forecast PPI to rise by 0.6 percent on a monthly basis, down from the one percent rise reported for July and June. On an annual basis, prices were expected to be up 8.3 percent.
Prices for “final demand” services—those used for personal consumption or exports—rose 0.7 percent. The index for final demand goods moved up 1.0 percent.
Stripping out food and energy price increases, producer prices rose 0.6 percent on a monthly basis and 7.3 percent annually, a larger than expected year over year increase. Excluding trade services, which measure