Core producer price index rises 6.7% in August; headline PPI tops 8% for first time

• August Producer Price Index: +0.7% vs. +0.6% consensus and +1.0% prior.
• The index increased for the eighth straight month.
• +8.3% Y/Y vs. +8.3% consensus and +7.8% prior; reflects the largest advance since 12-month data were first calculated in November 2010.
• Core PPI: +0.6% vs. +0.5% consensus and +1.0% prior.
• +6.7% Y/Y vs. +6.6% consensus and +6.2% prior.
• In the headline number, about a quarter of the August advance in prices for final demand goods are due to an 8.5% rise in the index of meats. Prices for residential natural gas, industrial chemicals, processed young chickens, motor vehicles, and steel mill products also moved higher.
• Meanwhile, the index of iron and steel scrap fell 3.7%; prices for diesel fuel and for natural, processed, and imitation cheese also declined.