Producer Price Index: Wholesale Inflation Rises to 1.6% in August

Wholesale inflation rose more than expected in August as producer prices increased for a second straight month. Here is the latest news release from the Bureau of Labor Statistics.

The producer price index for final demand was up 0.7% month-over-month, its largest monthly increase since June 2022 and higher than the expected 0.4% increase (s.a.). On a non-seasonally adjusted basis, this month's headline PPI accelerated to 1.6% year-over-year, up from last month's 0.8% yearly increase and above the forecast of 1.2%.

Core PPI (excluding food and energy) for final demand was up 0.2% month-over-month (s.a.). On a non-seasonally adjusted basis, core PPI slowed down to 2.2% year-over-year from last month's 2.4% yearly increase and above the forecast of 1.2%. Both readings were consistent with their respective forecasts.

Below is a chart of the historical series with a callout to the most recent 12 months.

PPI - producer price index year over year