Wholesale inflation in America rose more than expected in August, bucking yesterday’s inflation data that showed that price increases have eased recently.
Product prices in the USA continue to rise - Source: The Wall Street Journal
The U.S. Department of Labor reported that the producer price index, a measure of what producers receive for their goods and services, rose 0.7% in August and 1.6% year-on-year. This monthly gain was higher than the Dow Jones estimate for a 0.4% rise and was the largest one-month increase since June 2022.
However, excluding food and energy, the PPI rose by 0.2%, in line with estimates. Excluding food, energy and commercial services, the PPI rose 0.3%.
Inflation rises in the USA
The data comes a day after the CPI rose 0.6% m-o-m and 3.7% year-on-year, and excluding food and energy, the core CPI rose 0.3% and 4.3% respectively.
A strike if this magnitude will essentially effect over a million people in the USA and abroad due to trickle down effect. Tier companies can’t ship parts if the lines not moving. The Fed wants to see unemployment rising to curb inflation. Well….it’s coming!! pic.twitter.com/i3QLQvCe0F
— Butchey Weinstein (@Monchhiski) September 13, 2023
As with the CPI, the upward pressure on the PPI came largely from the big jump in energy prices, and the PPI jumped 10.5% month-on-month, driven by a 20% rise in gasoline prices.
Prices of final demand goods rose 2% in August, the largest monthly increase since June 2022. Prices for services increased by 0.2%.
Energy prices rise in the USA
In other economic news released on Thursday, the Commerce Department estimated that retail sales increased 0.6 percent higher than expected in August, well above the Dow Jones Index’s estimate of a 0.1 percent increase. Excluding automobiles, sales also rose 0.6% versus the estimate of 0.4%.
High gas prices push up inflation, but prices overall are slowly moving in the right direction WSOC TV #Energy #EnergyLife #EnergyNews [Video] Inflation jumped last month largely because of a spike in gas prices, while other costs rose more slowly,… https://t.co/Rs6IfIujQn
— Lisa MacKay (@MacKayUSA) September 13, 2023
These figures have not been adjusted for inflation, suggesting that consumers continue to hold out despite rising prices and increasing credit card debt levels.
The retail report also reflects higher energy prices, with gas station sales up 5.2%.
Further data showed today that initial jobless claims in the U.S. rose to 220,000 for the week ended Sept. 9, according to the Labor Department. However, that was slightly lower than the Dow Jones estimate of 225,000 points.
