WASHINGTON — Inflation at the wholesale level leapt 8.7% in August from a year earlier, a downturn from July yet still a painfully high level that recommends costs will keep increasing for months to come.
Wednesday’s report from the Labor Department likewise revealed that on a month-to-month basis, the manufacturer rate index — which steps inflation priorto it reaches customers — decreased 0.1% from July to August, the 2nd straight month-to-month decrease.
Yet the muchbetter readings mainly show plunging gas rates and puton’t always point to a wider downturn in inflation. A step that omits the unstable food and energy classifications — so-called core rates — increased 0.4% from July to August and 7.3% in August compared with a year back.
The expense of services — which are progressively driving customer inflation — increased 0.4% in August,