Sundaymail EditorUS producer prices increased solidly in August, indicating that high inflation is likely to persist for a while, with supply chains remaining tight as the Covid-19 pandemic drags on.
The producer price index for final demand rose 0,7 percent last month, the Labour Department said on Friday.
That followed two straight monthly increases of 1,0 percent.
In the 12 months through August, the PPI accelerated 8,3 percent, the biggest year-on-year advance since November 2010, after surging 7,8 percent in July.
Economists polled by Reuters had forecast the PPI gaining 0,6 percent on a monthly basis and rising 8,2 percent year-on-year.
Factories and service providers still struggled to secure labour and raw materials, and faced logistics delays.
Very low inventory levels because of the supply bottlenecks have allowed producers to easily pass on the higher costs to consumers.
The Fed’s preferred inflation measure, the core personal consumption expenditures price index, increased 3,6 percent in the 12 months through July after a similar gain in June. — Reuters
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