Experts say U.S. producer prices rebounded in August, driven by a surge in the cost of gasoline, and add there were also signs of a pickup in underlying producer inflation.
Figures released Wednesday morning by the U.S> Labor Department showed the stateside producer price index for final demand increased 0.2% last month after slipping 0.1% in July. In the 12 months through August, the PPI rose 2.4% after advancing 1.9% in July.
Economists had forecast the PPI gaining 0.3% last month and accelerating 2.5% from a year ago.
A key gauge of underlying producer price pressures that excludes food, energy and trade services rose 0.2% last month after being unchanged in July. The so-called core PPI increased 1.9% in the 12 months through August after a similar gain in July.
Inflation is being closely watched for clues on the timing of the next interest rate increase from the Federal Reserve. Economists expect the U.S. central bank will announce a plan to start reducing its $4.2-trillion portfolio of Treasury bonds and mortgage-backed securities at its policy meeting next week.
The U.S. central bank is expected to delay raising rates until December.
