US wholesale prices hit 5.4% yearly as diesel surges

US wholesale prices rose in August, with the Bureau of Labor Statistics Producer Price Index putting final demand up 0.4% on the month, seasonally adjusted, and 5.4% over the 12 months ended in August on an unadjusted basis. The 10 September release is USDL 26-1495.

The print is the official BLS PPI for final demand, not a consumer CPI figure and not a Federal Reserve rate decision.

Final-demand goods rose 1.1% on the month, and services rose 0.1%. Energy was the main goods driver at +4.2%. Diesel fuel jumped 24.1% and, BLS said, accounted for over a third of the August increase in final-demand goods. Transportation and warehousing services rose 2.3% and did most of the services work.

July's monthly reading now stands at +0.1%. CNBC said that was an upward revision from an initial estimate of unchanged. BLS notes that figures for April through July were revised for late reports and corrections.

Excluding food and energy, final demand rose 0.2% on the month and 4.6% over 12 months. Final demand less foods, energy, and trade services rose 0.3% and 4.7%. CNBC said the +0.4% monthly print matched the Dow Jones consensus, while the 5.4% yearly figure was 0.1 percentage point above estimate.

The print feeds the inflation-pipeline debate ahead of the Fed's next policy meeting, the same week as UK GDP up 0.4% in July and the ECB deposit-rate lift to 2.50%. It does not by itself decide that meeting.