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The Producer Price Index (PPI) for finished goods exceeded forecasts in August and grew an annualized 4.8 percent, the largest advance since March. Headline growth was led by energy prices, which rose a healthy 29.7 percent in their first increase in five months. Meanwhile, the core index slowed in August. The core PPI, which omits food and energy prices for a more stable measure of price behavior, was up a very modest 0.7 percent after climbing 4.2 percent in July. Consequently, year-over-year change in the core eased 0.2 percentage point to 1.3 percent. However, this is still consistent with the series?’ pattern of a slow, steady up-trend since October 2009’s trough of 0.7 percent. Upstream, both core intermediate and core crude goods’ prices reversed course in August, with core intermediate prices inching up 0.7 percent after two months of decline and core crude goods jumping 61.1 percent following three straight drops.