The numbers: The producer price index rose 0.7% in August, the Labor Department said Friday. That’s down from a 1% jump in July.
Economists polled by The Wall Street Journal had forecast a 0.6% advance.
The core producer price index, which excludes volatile food and energy prices, rose 0.3% in August, down from a 0.9% gain in the prior month.
Overall producer prices are up 8.3% in August from a year earlier, up from 7.8% in the prior month. That’s the largest gain since the data was first collected in November 2010.
Core prices are up 6.3% from a year earlier, up from 6.1% in July. That’s the largest gain since the data was first calculated in August 2014.
Big picture: Economists are starting to talk about prices peaking in the wholesale sector. The PPI index had risen an average of 0.9% monthly over the first seven months of the year.
Producers are still struggling with shortages, bottlenecks and transportation woes.
Market reaction: Stocks
are expected to open higher on Friday after President Joe Biden took a firm tone urging Americans to get vaccinated.
The yield on the 10-year Treasury note
rose 2 basis points to 1.32%.