Inflation at the wholesale level surged more than expected in August, reversing previous declines as consumers continued to grapple with the rising cost of everyday goods.
The Labor Department said Thursday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, climbed 0.7% in August from the previous month. On an annual basis, prices are up 1.6%.
Those figures are both higher than the 1.2% headline increase and 0.4% monthly figure forecast by Refinitiv economists.
However, there were some signs that underlying inflationary pressures within the economy is beginning to fade.
Excluding the more volatile measurements of food and energy, so-called core inflation rose 0.2% for the month – in line with expectations and below the 0.3% reading in July. The figure was up 2.2% on a 12-month basis.
This is a developing story. Please check back for updates.
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