After reporting a modest increase in U.S. consumer prices on Tuesday, the Labor Department released a report on Wednesday showing U.S. producer prices increased by more than expected in the month of September.
The Labor Department said its producer price index for final demand climbed by 0.4 percent in September after rising by 0.3 percent in August. Economists had expected prices to edge up by 0.2 percent.
The report said food prices jumped by 1.2 percent in September after decreasing by 0.4 percent in August, while energy prices fell by 0.3 percent after dipping by 0.1 percent.
Excluding food and energy prices, core producer prices still rose by 0.4 percent in September, matching the increase seen in the previous session. Core prices were also expected to inch up by 0.2 percent.
The stronger than expected core price growth was partly due to a continued increase in prices for services, which climbed by 0.4 percent in September after advancing by 0.5 percent in August.
The Labor Department said over 80 percent of the broad-based September increase can be traced to prices for final demand services less trade, transportation, and warehousing, which climbed by 0.5 percent.
The indexes for final demand trade services and final demand transportation and warehousing services also rose by 0.2 percent and 0.4 percent, respectively.
With the bigger than expected monthly increase, producer prices in September were up by 0.4 percent compared to the same month a year ago following a 0.2 percent dip in August.
The report also showed a significant acceleration in the annual rate of core producer price growth, which jumped to 1.2 percent in September from 0.6 percent in August.
On Tuesday, the Labor Department released a separate report showing a modest increase in consumer prices in the month of September, with the uptick in prices matching economist estimates.
The Labor Department said its consumer price index rose by 0.2 percent in September after climbing by 0.4 percent in August.
Prices for used cars and trucks spiked by 6.7 percent, accounting for most of the monthly increase by the headline index.
The report said energy prices increased by 0.8 percent amid a jump in prices for natural gas, while food prices came in unchanged.
Excluding food and energy prices, core consumer prices still edged up by 0.2 percent in September following the 0.4 percent growth seen in August. The uptick in core prices also matched estimates.
Compared to the same month a year ago, consumer prices in September were up by 1.4 percent, slightly faster than the 1.3 percent growth seen in August.
Core consumer prices were up by 1.7 percent year-over-year in September, unchanged from the annual growth seen in the previous month.
The material has been provided by InstaForex Company – www.instaforex.com
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