U.S. Producer Prices Rise 0.4% in August

U.S. producer prices rose 0.4% in August, accelerating from a 0.1% increase in July, according to the Bureau of Labor Statistics. Prices were 5.4% higher than a year earlier.

Energy was the biggest driver, with final-demand energy prices jumping 4.2% and diesel fuel surging 24.1%. Producer prices for services rose just 0.1%, while underlying final demand excluding food, energy and trade services increased 0.3% and was up 4.7% year over year.

Bottom line: Wholesale inflation picked up in August, largely because of a sharp increase in energy costs, while underlying price pressures remained elevated.