U.S. producer prices rose slightly more than expected in August as energy prices recorded their first increase since March, government data showed on Thursday, calming fears of deflation for now.
The Labor Department said the seasonally adjusted index for prices paid at the farm and factory gate increased 0.4%, the largest increase in five months, after gaining 0.2% in July.
Analysts polled by Reuters had expected producer prices to rise 0.3% last month. In the 12 months to August, producer prices increased 3.1%, slowing from the prior month's 4.2% increase.
Producer prices last month were bumped up by a 2.2% jump in energy costs. Gasoline prices surged 7.5%, the largest increase since January, after falling 2.2% in July. Food prices fell 0.3% after rising 0.7% in July.
