Sept. 14 (UPI) — The U.S. Bureau of Labor Statistics reported Thursday that wholesale prices in August saw their largest jump since last summer.
Producer price index prices were up 0.7% in August, seasonally adjusted, marking the largest increase since June 2022 when they rose by 0.9%
Final demand goods prices jumped 2% in August, also the largest advance since it went up by 2.1% in June 2022.
The PPI change in August from a year ago for final demand goods was 1.6%.
When foods, energy and trade were excluded the change in final demand prices from a year ago was 3%.
“For the 12 months ended in August, prices for final demand less foods, energy, and trade services rose 3%, the largest advance since moving up 3.4 percent for the 12 months ended in April,” the BLS Thursday statement said.
Energy prices drove the August PPI increase, rising by 10.5%.
“Over 60% of the August rise in the index for final demand goods can be traced to prices for gasoline, which jumped 20%,” the BLS said in a statement. “The indexes for diesel fuel, jet fuel, home heating oil, beverages and beverage materials, and iron and steel scrap also moved higher.”
Diesel fuel in the processed goods for intermediate demand category jumped 41.1%, accounting for over 70% of the August rise in prices for this category of goods.
The BLS said 80% of the rise in final demand prices for August can be attributed to a 2% hike in final demand goods prices.
But the PPI prices for unprocessed goods for intermediate demand were down 26.9% from a year ago, according to the BLS.
This report reflects a similar result in the Consumer Price Index reported Wednesday. Gasoline also drove the increase in the CPI, but on an annual basis, energy prices in August were down 3.6% from a year ago.
When food, energy and trade services are excluded the PPI increase was 0.3%, the same as in July.
The BLS said crude petroleum prices were up 8.9% while natural gas and corn prices declined.
