WASHINGTON – U.S. wholesale price increases accelerated in August, a sign that inflation remains stubbornly strong despite a series of sharp interest rate hikes by the Federal Reserve.
The Labor Department reported Thursday that its producer price index — which measures inflation before it reaches consumers — rose 1.6% last month from a year earlier. This represents a slight annual increase of 0.8% in July and only 0.1% in June. Higher fuel prices fueled many of the increases.
Excluding the volatile energy and food categories, core inflation rose 2.2% in August compared to a year earlier, smaller than the 2.4% annual increase recorded in July.
Wholesale prices continued to rise more slowly than consumer spending, a sign that inflation may continue to cool as weaker wholesale price increases translate into smaller increases in consumer prices. consumer. Thursday’s data shows prices charged by manufacturers, farmers and wholesalers.
The government said Wednesday that the consumer price index, the most closely watched inflation gauge, rose 3.7% in August from a year earlier, up from a 3.2% annual increase in July. However, excluding volatile energy and food items, core inflation fell to 4.3% in August from 4.7% in July.
Also on Thursday, the government reported that retail sales rose 0.6% in August, mainly because higher fuel prices boosted sales at gas stations. Excluding gasoline, retail sales rose just 0.2%.
On a month-to-month basis, wholesale prices rose 0.7% in August, the biggest increase in more than a year, compared to a 0.4% increase in July.
