U.S. producer prices in August made largest annual increase since 2010

Sept. 10 (UPI) -- Producer prices in the United States rose substantially in August and saw their highest 12-month increase in more than a decade, the Labor Department said in its monthly report Friday.

The producer price index rose by 0.7% over July -- and by 8.3% over August 2020, the greatest annual gain since 2010.

The index, which measures average changes in prices for U.S. producers, had increased by 1% in both June and July.

The report reflects concern about the impact of persistent, ongoing supply chain issues and renewed COVID-19 measures following the emergence of the Delta coronavirus variant.

The report said more than 30% of the August increase can be attributed to a rise in margins for health, beauty and optical goods retailing.

Trade services increased 1.5%, goods prices rose 1% and food surged 2.9%.