By Tom Burnett CFA
On September 10, 2021, the Bureau of Labor Statistics announced the Producer Price Index increase for the month of August. The Index rose 0.7% from July, above the consensus estimate of 0.6% (according to CNBC). The July increase was 1.0%, so the August number signaled a possible slowdown in inflationary pressures. The 12-month increase, however, was 8.3% which is the largest number since that statistic was first calculated in November, 2010.
In August, the ‘core’ rate which excludes food and energy rose 0.3%, compared to an increase of 0.9% in July. The 12-month increase was 6.3%, the largest since that figure was first compiled in August 2014.
The next PPI inflation report will be issued on October 14, 2021.
Tom Burnett CFA is Director of Research