The U.S. August producer price index dropped 0.9%, the core rate grew 0.2%, and year-over-year PPI increased 9.6% overall and 3.6% at the core, the Labor Department reported Friday.

IFR Markets projected PPI would decrease 0.5%, and rise 0.2% at the core, for annual rises of 9.9% overall and 3.6% at the core.

Food prices grew 0.3% in the month, compared to a 9.1% gain year-over-year.

Energy prices slid 4.6% in the month and grew 27.4% in the year, with gasoline prices 3.5% lower in August and up 43.1% over the past 12 months.

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