NASHVILLE, TENN. (RFD NEWS) — Inflation picked up in August, with prices rising for both consumers and producers as energy costs, particularly gasoline and diesel, put upward pressure on the broader economy.
The U.S. Bureau of Labor Statistics reported Friday that the Consumer Price Index increased 0.4 percent in August after rising 0.1 percent in July. Consumer prices were up 3.4 percent from a year earlier.
Gasoline prices were a major factor, increasing 3.9 percent during the month and accounting for more than one-third of the overall monthly increase in consumer prices. The energy index rose 2.1 percent.
Food prices increased 0.1 percent in August, while food prices away from home rose 0.3 percent. Shelter costs rose 0.3 percent, up from 0.1 percent in July.
Excluding food and energy, consumer prices rose 0.3 percent in August, up from 0.2 percent in July. Over the past year, core consumer prices increased 2.4 percent.
At the producer level, prices also moved higher.
The Producer Price Index for final demand increased 0.4 percent in August after rising 0.1 percent in July. Producer prices were up 5.4 percent from a year earlier.
The increase was particularly notable for goods, where final demand prices climbed 1.1 percent. Energy prices at the producer level rose 4.2 percent.
Diesel fuel was a major contributor, with prices jumping 24.1 percent in August. The BLS said the diesel price increase accounted for more than one-third of the monthly rise in final demand goods.
Higher diesel costs are particularly relevant for agriculture and other industries that rely on fuel for transportation and production.
Producer prices for final demand services increased 0.1 percent in August. Transportation and warehousing services rose 2.3 percent, with truck freight transportation up 2.0 percent.
Further up the production chain, prices for processed goods used for intermediate demand increased 1.8 percent in August. More than 80 percent of that increase was tied to higher prices for processed energy goods.
Prices for unprocessed goods used for intermediate demand increased 1.1 percent. The BLS reported that prices for corn and hay, hayseeds, and oilseeds increased during the month, while prices for slaughter cattle declined 6.4 percent.
