A measure of producer price inflation showed renewed pressure from rising energy prices last month, potentially adding to the case for an interest-rate hike at the Federal Reserve’s meeting next week.
The producer price index rose 0.4% in August from the prior month — the most since May — and 5.4% from a year earlier, according to Bureau of Labor Statistics data out Thursday. Excluding food and energy, the gauge advanced 0.2% last month and 4.6% from a year ago. Thursday’s figures come a day ahead of the latest update to the consumer price index, which is expected to show so-called core inflation was relatively modest even as rising gasoline prices boosted the headline measure. Some Fed officials have signaled the interest-rate decision at their Sept. 15-16 meeting may come down to what this week’s reports reveal.
We get reaction from Anna Wong, Chief US Economist for Bloomberg Economics. (Source: Bloomberg)