Prices obtained by producers of goods and services of final demand rose in August at the highest annual rate since at least 2010, the Department of Labor reported on Friday.
The producer price index rose 0.7% during the month, above the 0.6% estimated by the Dow Jones, although below the 1% increase in July.
On a year-over-year basis, the indicator increased by 8.3%, which is the largest annual increase since records are maintained until November 2010. This happened after an advance of 7.8% in July, which also set a record.
The data comes amid intensified inflationary fears fueled by supply chain problems, the shortage of various consumer and production products and increased demand related to the Covid-19 pandemic. Federal Reserve officials expect inflationary pressures to ease throughout the year, but they have remained stubbornly persistent, with figures on Friday indicating that the trend is likely to continue.
Excluding food, energy and trade services, final demand prices rose 0.3% during the month, below the 0.5% estimated by Dow Jones. However, this left the basic PPI 6.3% higher than a year ago, also the largest increase in data recorded in August 2014.
Final demand services increased by 0.7% during the month, thanks to a gain of 1.5% in commercial services or margins received by wholesalers and retailers. Transportation and storage costs rose 2.8%.
About a third of global profit comes from health, beauty and optical products, which jumped 7.8%. Prices related to outpatient hospital care slowed gains, with a 1.5% drop.
The prices of final demand goods increased by 1% during the month, driven mainly by a 2.9% gain in food which, in turn, resulted in an 8.5% increase in food prices. meat. Prices of slaughtered poultry increased by 11%. Iron, steel and diesel fuel prices fell.
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