Partly reflecting another jump in energy prices, the Labor Department released a report on Thursday showing that U.S. producer prices increased in line with economist estimates in the month of September.
The Labor Department said its producer price index for final demand climbed by 0.4 percent in September after edging up by 0.2 percent in August.
The increase in producer prices was partly due to another jump in energy prices, which spiked by 3.4 percent in September after surging up by 3.3 percent in August.
Higher energy prices were likely the result of reduced refining capacity in the Gulf Coast area due to Hurricane Harvey, the Labor Department said.
Excluding food and energy prices, core producer prices still rose by 0.4 percent in September after inching up by 0.1 percent in August. Core prices had been expected to rise by 0.2 percent.
An increase in prices for services contributed to the core price growth, with the index for final demand services climbing by 0.4 percent in September after ticking up by 0.1 percent in August.
Prices for final demand trade services showed a notable increase, jumping by 0.8 percent in September after coming in unchanged in the previous month.
The report also said the annual rate of producer price growth accelerated to 2.6 percent in September from 2.4 percent in August.
The year-over-year growth in core consumer prices also accelerated to 2.2 percent in September from 2.0 percent in the previous month.
On Friday, the Labor Department is scheduled to release a separate report on consumer prices in the month of September.
Consumer prices are expected to climb by 0.6 percent in September after rising by 0.4 percent in August. Core consumer prices are expected to edge up by 0.2 percent for the second straight month.
The material has been provided by InstaForex Company – www.instaforex.com