US inflation at the wholesale level accelerated last month, as the war with Iran pushed up energy prices.
The Producer Price Index, which tracks price changes received by US producers and manufacturers, increased 5.4% in the 12 months that ended in August. That was a 0.6% acceleration from 4.8% in July, according to Bureau of Labor Statistics data released Thursday.
On a monthly basis, prices across goods and services rose 0.4% in August from 0.1% in July, matching economists’ expectations.
Prices for goods alone rose to 1.1%, a significant shift from July, when they fell by 0.4%. More than three-fourths of run-up in goods prices in August stemmed from a 4.2% monthly rise in energy prices. And there’s no sign this is going to change soon because crude oil futures have surged so far in September. Brent crude, the global oil benchmark, raced above $105 a barrel on Thursday for the first time since late May.
But two of the most volatile categories, which make up a measure known as “core” inflation, rose at a more muted annualized rate of 4.6% versus 4.3% in July.
