The Bureau of Labor Statistics reports that in August the producer price index (PPI) soared by 1.7%. This gain is the largest in a single month since the 1.9% gain in June of 2009, and as you can see from the chart, several times what is typical.
The core PPI on the other hand, which excludes food and energy, rose only 0.2%, which is fairly consistent with historical movements. The 0.9% rise in food and the monstrous 6.4% increase in energy are what inflated the PPI reading to 1.7%.
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