US Producer Prices Rise 0.4% In September, In Line With Estimates

WASHINGTON (Alliance News) - Partly reflecting another jump in energy prices, the Labor ...

Alliance News 12 October, 2017 | 2:17PM
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WASHINGTON (Alliance News) - Partly reflecting another jump in energy prices, the Labor Department released a report on Thursday showing that US 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% in September after edging up by 0.2% in August.

The increase in producer prices was partly due to another jump in energy prices, which spiked by 3.4% in September after surging up by 3.3% 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% in September after inching up by 0.1% in August. Core prices had been expected to rise by 0.2%.

An increase in prices for services contributed to the core price growth, with the index for final demand services climbing by 0.4% in September after ticking up by 0.1% in August.

Prices for final demand trade services showed a notable increase, jumping by 0.8% 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% in September from 2.4% in August.

The year-over-year growth in core consumer prices also accelerated to 2.2% in September from 2.0% 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% in September after rising by 0.4% in August. Core consumer prices are expected to edge up by 0.2% for the second straight month.

Copyright RTT News/dpa-AFX

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