Wholesale Prices in U.S. Increased in August on Jump in Energy
Wednesday, 13 September 2017 19:46 WIB | ECONOMY |Ekonomi AS
Rising U.S. wholesale prices in August reflect the biggest jump in energy costs since January, while underlying inflation remained contained, a Labor Department report showed Wednesday in Washington.
Highlights of Producer Prices (August)
Producer-price index rose 0.2% m/m (est. 0.3% rise) after 0.1% drop the previous month
PPI rose 2.4% y/y after 1.9% gain in prior 12-month period
Excluding food and energy, core gauge rose 0.1% m/m, up 2% y/y
About three-fourths of the monthly gain in the headline gauge came from goods, most of which was due to a 9.5 percent jump in gasoline, along with the biggest rise in jet-fuel costs since 2009. Since the PPI pricing date was Aug. 15, the data shouldn't have captured the effects of Hurricane Harvey, said Scott Sager, a Bureau of Labor Statistics economist.
The PPI excluding food, energy, and trade services, a measure some economists prefer because it strips out the most volatile components, rose 1.9 percent from August 2016, the same as the prior month. That indicates broader inflation is taking time to pick up.
Price pressures in the production pipeline are still relatively contained, helping keep the Federal Reserve's preferred consumer-price measure below its goal and one reason why policy makers plan to raise borrowing costs only gradually. Central bankers will update their interest-rate forecasts next week, indicating whether the chances of a December hike have ebbed.
Source : Bloomberg