Surge in cost of petrol helps US producer prices rebound in August
Washington — US producer prices rebounded in August, driven by a surge in the cost of petrol, and there were also signs of a pickup in underlying producer inflation. The Labor Department said its producer price index (PPI) for final demand increased 0.2% last month after slipping 0.1% in July. In the 12 months to end-August, the PPI rose 2.4% after advancing 1.9% in July. Economists had forecast the PPI gaining 0.3% in August 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 to end-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 US central bank will announce a plan to start reducing its $4.2-trillion portfolio of treasury bonds and mortgage-backed securities at its...
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