Wholesale prices surged 8.3% year over year in August for a record fifth consecutive month of price increases.
According to the U.S. Labor Department, producer prices rose 0.7% in August, slightly less than the 1% increase from the prior month but, still ahead of analyst expectations.
Annualized, the producer price index jumped 8.3% on the heels of the 7.8% increase in July.
Core producer prices (excluding food and energy) jumped 6.7% in August.
The question now is whether these increases will be passed along to consumers by way of higher prices tags. The Consumer Price Index has risen 5.4% for the last two months on record, thereby reducing the purchasing power of the U.S. dollar.