US annual Producer Price Index slows YoY in August but rises MoM

The US annual Producer Price Index (PPI) slowed in August but rose on a monthly basis amid the accelerated annual core inflation, reflecting mixed views of production cost pressures in the states.

According to Bureau of Labor Statistics data released today, Sept. 12, the annual PPI cooled to 1.7% in August, from 2.1% in July, recording its lowest level since last February.

Meanwhile, data showed that core inflation, which excludes volatile items such as food, energy and transport, inched higher to 3.3% in August, from 3.2%.

On a monthly basis, prices rose 0.2% in August, in line with forecasts, after keeping flat in July. Core PPI rose by 0.3% for the second successive month, compared to estimates of a 0.2% rise.

August’s monthly increase was driven by a 0.4% gain on the services side, as goods prices were unchanged, thanks in part to falling energy prices.