The Labor Department reported on Friday that prices for goods and services that are ultimately charged to producers rose in August at the highest annual rate since at least 2010.
The producer price index for the month is up 0.7%, above the Dow Jones estimate of 0.6%.
Year over year, the tonnage increased 8.3%, the largest annual increase since records were maintained in November 2010.
The data comes amid fears of rising inflation due to supply chain issues, shortages of various consumer and producer goods and increased demand linked to the COVID-19 pandemic. Federal Reserve officials expected inflationary pressures to ease over the year, but remained adamant.
Excluding food, energy and business services, final demand prices rose 0.3% for the month, well below the Dow Jones estimate of 0.5%. Nonetheless, that left the core PPI up 6.3% from the previous year, also the largest record increase for data dating back to August 2014.
Final demand services increased 0.7% for the month, led by a 1.5% increase in commercial services, or margins realized by wholesalers and retailers. Transportation and warehousing costs increased 2.8%.
About a third of total profit came from health, beauty and optical products, which jumped 7.8%. Prices for outpatient hospital care capped gains, down 1.5%.
The prices of final demand goods rose 1% for the month, mainly food products up 2.9%, which in turn came from an 8.5% increase in meat prices. The prices of iron, steel and diesel fuel have fallen.
This is last minute news. Please come back here for updates.
Be a smart investor with CNBC Pro.
Access stock picks, analyst calls, exclusive interviews and CNBC TV.
Sign up to start a free trial today.