US Producer Price Index Accelerates to 5.4% Year-Over-Year in August

The US Producer Price Index rose 0.4% month-over-month in August, bringing the annual headline rate to 5.4% from 4.8% in July and exceeding consensus forecasts of 5.3%. Core PPI climbed 4.6% year-over-year, up from 4.3% in July, reflecting broad-based pipeline pipeline cost pressures driven by higher commodity inputs and transport costs. The hotter-than-expected factory-gate inflation data pushed market-implied probabilities for an interest rate hike at the upcoming Federal Reserve policy meeting above 65%.