US producer prices soar 8.6% in September, largest rise ever

By Tuba Sahin

ANKARA (AA) - US producer prices soared 8.6% in September from the same month last year, according to the US Labor Department on Thursday.

It was the largest rise since 12-month data were first calculated in November 2010.

The Producer Price Index (PPI), which measures changes in the price of goods and services from a producer perspective, was up 8.3% in August.

In September, the PPI rose 0.5% from a month ago, which was below the market forecast of 0.6%, after rising 0.7% in August.

"Nearly 80% of the September increase in the index for final demand can be traced to a 1.3% rise in prices for final demand goods," the Labor Department said in a statement.

Prices for final demand services went up 0.2%, the ninth consecutive advance, it added.

Core producer prices, which exclude food and energy, also climbed 0.2% in September from August, while they surged 6.8% year-on-year.

While core PPI nudged up 0.6% in August on a monthly basis, it was up 6.7% on an annual basis.