Producer prices in the U.S. in August grew stronger expectations

Producer prices in the U.S. in August this year, after eliminating seasonal fluctuations have increased by 0,4% compared with July, according to a press release from the Ministry of Labour.

Annualised growth rate in August was 3.1%.

Analysts polled by information-analytical Internet portal dailyFX.com, expected growth in producer prices in the reporting period only 0.3% compared with July and 3% annualized.

In July the index showed slightly smaller gains - by 0,2% in June - a decline of 0.5%.

The main factor for the upward dynamics of the index has increased over the period producer prices for energy - they rose in August by 2.2% compared with July.

The index of producer prices, excluding energy and food, in the U.S. in August grew by 0,1% compared with July, which coincided with the expectations of analysts.

Producer price index reflects the average change in prices for raw materials and goods of intermediate consumption and is formed from the prices of intermediate and finished products. The final indicator, which includes labor costs, gives an idea of inflation caused by changes in labor costs.

Some analysts prefer to track changes in producer prices excluding energy and food, believing this figure to be more reliable indicator of the increased cost of goods of intermediate consumption.