U.S. producer prices rebounded in August, driven by a surge in the cost of gasoline, and there were also signs of a pickup in underlying producer inflation.
The Labor Department said its producer price index for final demand increased 0.2 percent last month after slipping 0.1 percent in July. In the 12 months through August, the PPI rose 2.4 percent after advancing 1.9 percent in July.
Economists had forecast the PPI gaining 0.3 percent last month and accelerating 2.5 percent from a year ago.
A key gauge of underlying producer price pressures that excludes food, energy and trade services rose 0.2 percent last month after being unchanged in July. The so-called core PPI increased 1.9 percent in the 12 months through August after a similar gain in July.
Inflation is being closely watched for clues on the timing of the next interest rate increase from the Federal Reserve. Economists expectThis post was originally published on this site