Reflecting a sharp jump in energy prices, the Labor Department released a report on Friday showing that U.S. producer prices increased by slightly more than expected in the month of September.
The Labor Department said its producer price index for final demand climbed by 0.3 percent in September after coming in unchanged in August. Economists had expected prices to edge up by 0.2 percent.
The bigger than expected increase in producer prices came as energy prices surged up by 2.5 percent in September after falling by 0.8 percent in August. Gasoline prices spiked 5.3 percent.
Excluding food and energy prices, core producer prices rose by 0.2 percent in September after inching up by 0.1 percent in August. Core prices had been expected to show another 0.1 percent uptick.
The increase in core prices came as prices for final demand services inched up by 0.1 percent for the second consecutive month.
The Labor Department said a 3.9 percent jump in prices for securities brokerage, dealing, investment advice, and related services was a major factor in the increase in service prices.
Compared to the same month a year ago, producer prices were up by 0.7 percent in September after coming in unchanged in August.
The annual rate of growth in core producer prices also accelerated to 1.2 percent in September from 1.0 percent in the previous month.
Next Tuesday, the Labor Department is scheduled to release its more closely watched monthly report on consumer price inflation.
by RTT Staff Writer
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