Producer prices surge 8.3% annually, fifth straight record gain
Producer prices rose 8.3% year over year
Payne Capital Management President Ryan Payne on the latest market and economic trends.
Producer prices climbed at the fastest annual pace on record for the fifth consecutive month in August as supply-chain disruptions and materials shortages continued to put upward pressure on costs.
The producer price index for final demand jumped 8.3% year over year, according to the Labor Department. The reading was hotter than the 8.2% increase that analysts surveyed by Refinitiv were expecting and above the 7.8% print recorded in July. The reading was the strongest since recordkeeping began in November 2010.
Producer prices rose 0.7% in August, slowing from the 1% increase the month prior. Economists were anticipating a 0.6% gain.
Prices for final demand services rose 0.7% last month, making for the eighth straight monthly increase. More than 30% of the increase in prices for final demand services was due to a 7.8% rise in margins for health, beauty, and optical goods retailing
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Final demand goods prices rose 1% in August, accelerating from a 0.6% increase in July. Half of the gain was the result of a 2.9% rise in prices for final demand foods.
Core producer prices, which exclude food and energy, climbed 6.7% annually and 0.6% in August. Analysts were expecting increases of 8.2% and 0.6%, respectively. The annual increase was the largest since the data set began in August 2014.