Washington, DC, September 19, 2006--The producer price index rose by a smaller-than-expected 0.1% in August, the Labor Department reported Tuesday.
The core rate of the producer price index fell 0.4%, the largest drop since April 2003 and the first two-month decline since late 2002. Read full government report.
Analysts were expecting a gain of 0.3% gain in the August PPI and 0.2% rise in the core rate.
Energy prices moderated in August, rising 0.3% after a 1.3% gain in July. This was the smallest increase since February.
Food prices jumped 1.4% after a 0.3% decline in the previous month. But consumer goods other than food and energy fell 0.5% in August, and capital equipment prices fell 0.3%.
The PPI is now up 3.7% in the past 12 months, down from 4.2% last month.
The core PPI has risen 0.9% in the past year, down from 1.3% last month.
The PPI had increased 0.1% in July, while the core PPI had fallen 0.3%.
Prices for intermediate goods destined for further processing increased 0.4% in August, down from a 0.5% gain in the previous month.
The core intermediate PPI rose 0.4% in August. The year-over-year increase rose to 8.4% from 7.9% last month.
