The U.S. Department of Labor's seasonally adjusted core measure of producer price inflation came in line with expectations with a 0.2% month-over-month gain in August, slower than the 0.7% gain seen in the previous month. The all-items measure of producer price inflation fell 0.9% in the month following a 1.2% increase in the prior month.
Economists were expecting core inflation to increase just 0.2% in the month, while the all-items index was predicted to decline 0.5%.
From a year ago, the core measure of producer price inflation was up 3.6%, while the annual headline rate came in at 9.6%.
Food prices increased 0.3% in the month while energy fell 4.6%.
Residential gas prices dropped 5.0% in the month, contributing to a 25.4% year-over-year gain, while gasoline prices actually fell 3.5% in the month, despite an annual increase of 43.1%.
The total price of intermediate goods declined 1.0% in the month but posted a 16.7% gain from the same time a year ago. Excluding food and energy, the rise was 1.7% month-over-month and 12.5% on the year.
The cost of total crude goods declined 11.9% in the month while the year-over-year increase stood at 38.1%. Excluding food and energy, the monthly result was -1.9%, or 33.2% on the year.
By Steve Stecyk and edited by Nancy Girgis
©CEP News Ltd. 2008