Energy pushes US producer-price inflation higher

U.S. producer prices rose 0.4% in August, lifting the annual increase to 5.4% from 4.8% in July. This index tracks what businesses receive for goods and services, so it is an early view of cost pressure in the economy rather than a direct measure of household prices. A 4.2% rebound in energy prices drove much of the monthly rise after two months of declines, while service prices rose only 0.1%. The figures do not guarantee that consumers will face matching increases, but they give the Federal Reserve another reason to be wary of declaring inflation contained—and traders increased bets on a rate hike at its next meeting.