A US producer price inflation indicator shows that last month's rise in energy prices once again brought inflationary pressure, which may further strengthen the reason for the Federal Reserve to raise interest rates at next week's meeting. According to data released by the US Bureau of Labor Statistics on Thursday, the producer price index rose 0.4% month-on-month in August, the biggest increase since May; it rose 5.4% year on year. Excluding food and energy, core PPI rose 0.2% month-on-month and 4.6% year-on-year. One day after the PPI report is released, the US will release the latest consumer price index. Expected data shows that although rising gasoline prices are driving up the overall CPI, core inflation is still relatively moderate. Some Federal Reserve officials have hinted that interest rate decisions at the September 15-16 meeting may depend on the information revealed in these inflation reports this week. Federal Reserve Chairman Kevin Walsh said in a speech last month that if policymakers are not convinced that the underlying inflation trend is improving significantly, then the Bank of America “still has work to do.” Data released on Thursday showed that after two consecutive months of decline, energy and transportation and storage costs rose sharply in August, and continued hostilities between the US and Iran may further complicate the outlook.

A US producer price inflation indicator shows that last month's rise in energy prices once again brought inflationary pressure, which may further strengthen the reason for the Federal Reserve to raise interest rates at next week's meeting. According to data released by the US Bureau of Labor Statistics on Thursday, the producer price index rose 0.4% month-on-month in August, the biggest increase since May; it rose 5.4% year on year. Excluding food and energy, core PPI rose 0.2% month-on-month and 4.6% year-on-year. One day after the PPI report is released, the US will release the latest consumer price index. Expected data shows that although rising gasoline prices are driving up the overall CPI, core inflation is still relatively moderate. Some Federal Reserve officials have hinted that interest rate decisions at the September 15-16 meeting may depend on the information revealed in these inflation reports this week. Federal Reserve Chairman Kevin Walsh said in a speech last month that if policymakers are not convinced that the underlying inflation trend is improving significantly, then the Bank of America “still has work to do.” Data released on Thursday showed that after two consecutive months of decline, energy and transportation and storage costs rose sharply in August, and continued hostilities between the US and Iran may further complicate the outlook.