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(The Center Square) – Producer prices shot up 8.7% in August over the previous 12 months, according to the U.S. Bureau of Labor Statistics Producer Price Index released Wednesday.

Month over month, the index declined 0.1% for the month of July.

The rise in other producer prices in August was largely offset by a decrease in the cost of gasoline, which has dropped from its record-high levels in recent weeks.

“In August, over three-quarters of the decrease in prices for final demand goods is attributable to the index for gasoline, which fell 12.7 percent,” BLS said. “Prices for diesel fuel, jet fuel, chicken eggs, primary basic organic chemicals, and home heating oil also declined. In contrast, the construction machinery and equipment index increased by 2.6 percent. Prices for beverages and beverage materials and electric power also rose.”

Many services saw a significant cost increase.

“Forty percent of the increase in prices for final demand services can be attributed to margins for fuels and lubricants retailing, which rose 14.2 percent,” BLS said. “The indexes for securities brokerage, dealing, investment advice, and related services; loan services (partial); transportation of passengers (partial); portfolio management; and chemicals and allied products wholesaling also moved higher. In contrast, prices for truck transportation of freight decreased by 1.9 percent. The indexes for guestroom rental and food and alcohol retailing also fell.”

The news comes a day after the stock market plummeted following the release of consumer price data showing prices rose on a range of expenses, including food.

“Increases in the shelter, food, and medical care indexes were the largest of many contributors to the broad-based monthly all items increase,” BLS said, as The Center Square reported. “These increases were mostly offset by a 10.6-percent decline in the gasoline index. The index for all items less food and energy rose 0.6 percent in August, a larger increase than in July.”

Casey Harper is a Senior Reporter for the Washington, D.C. Bureau. He previously worked for The Daily Caller, The Hill, and Sinclair Broadcast Group. A graduate of Hillsdale College, Casey's work has also... More by Casey Harper, The Center Square

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