(fxcue news) - A report released by the Labor Department on Thursday showed producer prices in the U.S. rose by slightly more than expected in the month of August. The Labor Department said its producer price index for final demand crept up by 0.2 percent in August, while revised data showed prices were unchanged in July. Economists had expected producer prices to inch up by 0.1 percent, matching the uptick originally reported for the previous month. At the same time, the report said the annual rate of producer price growth slowed to 1.7 percent in August from a downwardly revised 2.1 percent in July. The year-over-year increase by producer prices was expected to decelerate to 1.8 percent from the 2.2 percent originally reported for the previous month. The slightly bigger than expected monthly increase by producer prices largely reflected a rebound by prices for services, which rose by 0.4 percent in August after falling by 0.3 percent in July. While prices for transportation and warehousing services edged down by 0.1 percent, prices for trade services increased by 0.6 percent and prices for other services rose by 0.3 percent. The Labor Department said a 4.8 percent spike by prices for guestroom rental was a major factor in the August advance in prices for services. Meanwhile, the report said prices for goods were unchanged in August after climbing by 0.6 percent in July, as a 0.9 percent pullback by energy prices helped offset higher prices for other goods. The Labor Department said core producer prices, which exclude prices for food, energy and trade services, rose by 0.3 percent for the second straight month. The annual rate of growth by core producer prices accelerated to 3.3 percent in August from 3.2 percent in July. "Core CPI surprised yesterday, and PPI came in hotter than forecast today, but we don't think we're at the start of a renewed rise in inflation," said Nationwide Financial Markets Economist Oren Klachkin "Rather, we think they are evidence of a bumpy path to 2%," he added. "A cooling economy and deflating labor market should dampen price pressures going forward." On Wednesday, the Labor Department released a separate report showing consumer prices in the U.S. increased in line with estimates in the month of August, although core consumer prices rose by slightly more than expected. The Labor Department said its consumer price index rose by 0.2 percent in August, matching the uptick seen in July as well as economist estimates. Meanwhile, the report said the annual rate of consumer price growth slowed to 2.5 percent in August from 2.9 percent in July. Economists had expected the year-over-year growth to decelerate to 2.6 percent. With the bigger than expected slowdown, consumer prices saw the smallest 12-month increase since February 2021. The Labor Department also said core consumer prices, which exclude food and energy prices, climbed by 0.3 percent in August after rising by 0.2 percent in July. Economists had expected core prices to rise by another 0.2 percent. The annual rate of core consumer price growth was unchanged from the previous month at 3.2 percent in August, in line with economist estimates.