US wholesale prices rise more than expected in August

US WHOLESALE prices rose by more than expected in August on the back of a surge in energy demand, according to government data released on Thursday (Sep 14).

The bigger-than-expected rise in the producer price index (PPI) highlights the impact of the recent rise in energy prices on both consumers and producers.

On Wednesday, headline consumer inflation also rose, fuelled by rising energy costs.

Wholesale prices rose by 0.7 per cent in August, building on a revised 0.4 per cent increase a month earlier, according to data from the Labor Department.

This was higher than the median forecast of economists surveyed by MarketWatch.

Much of the increase in overall PPI is attributable to a 2.0 per cent rise in final demand goods, with a 10.5 per cent jump in energy costs the primary factor.

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Final demand services rose by a more modest 0.2 per cent, driven by a 1.1 per cent increase in the index for residential real estate services, according to the Labor Department.

Stripping out the more volatile food and energy demand, the so-called core PPI rose by just 0.3 per cent, which was in line with recent months and only slightly above expectations. AFP