U.S. producer prices recorded another record increase in August, according to government data released on Friday, as the world’s largest economy grapples with high material costs as part of its recovery from the crisis. Covid-19.
The producer price index (PPI) jumped 8.3% from August 2020, unadjusted for seasonal variations, the largest increase since the first data collection in November 2010, according to the report from the Department of Job.
Excluding volatile food, energy and commercial services, the unadjusted PPI increased 6.3% year-on-year, also a record jump since the calculation was first made in August 2014.
Wholesale price hikes were the latest signs that rising demand along with supply and labor shortages were fueling US inflation.
“Inflation continues to be impacted by the effects of the pandemic, including strong demand and supply constraints,” said Rubeela Farooqi of High Frequency Economics.
“The impact on demand will likely fade over the next few months, but supply chains are at risk if they continue to be disrupted by virus outbreaks.
“Compared with July, the PPI rose 0.7%, slightly more than expected. This was largely due to a 0.7% increase in services, while the goods index rose 1%, the data showed. price increases may subside.
The month-over-month increase was lower than the 1% increase seen in data for July.
And excluding food, energy and commercial services, prices rose 0.3% last month from July, a sharp slowdown from the 0.9% increase seen the month before.