Annual wholesale inflation accelerated to 5.4% from July’s 4.8%
The U.S. Bureau of Labor Statistics reported Thursday that wholesale prices rose a seasonally adjusted 0.4% in August, matching market expectations. The monthly increase brought the 12-month change in final demand prices to 5.4%, up from a 4.8% annual gain for the 12 months ending in July.
Energy drove the bulk of the monthly move. The index for final demand goods rose 1.1% in August, with a 4.2% rise in energy prices accounting for three-quarters of that increase. Diesel fuel led the energy surge, jumping more than 24% during the month.
The services index rose 0.1% in August. Warehousing and transportation costs climbed 2.3% within services, while trade services fell 0.2%.
Core wholesale inflation, which strips out volatile food and energy prices, rose 0.4% in August, in line with the headline figure. Final demand foods increased 0.1%.
The report came as crude oil benchmarks pushed higher. West Texas Intermediate, the U.S. benchmark, rose past $100 per barrel. Brent crude, the international benchmark, reached $107 per barrel.
Bond yields climbed as well, with the 10-year Treasury yield reaching its highest level since 2023 — an indicator of elevated borrowing costs across the economy. The 10-year yield stood at 4.8% as of Thursday.
Stock market futures declined following the release, a market reaction consistent with the inflation signal and the energy-price backdrop.
The consumer price index, the next major inflation gauge, is scheduled for release Friday. The August PPI report provides one of the final looks at August price pressures before that consumer-level reading.