The Labor Department reported on Friday the U.S. producer-price index (PPI) rose 0.7 percent m-o-m in August, following an unrevised 1.0 percent m-o-m gain in July. This advance was the smallest since May.

For the 12 months through August, the PPI surged 8.3 percent after an unrevised 7.8 percent climb in the previous month. That represented the largest gain since 12-month data were first calculated in November 2010. 

Economists had forecast the headline PPI would increase 0.6 percent m-o-m last month and 8.2 percent over the past 12 months.

According to the report, the August rise in the index for final demand was led by a 0.7 percent m-o-m gain in the index for final demand services. In addition, the index for final demand goods climbed 1.0 percent m-o-m.

Excluding volatile prices for food and energy, the PPI rose 0.6 percent m-o-m and climbed 6.7 percent over 12 months (the largest increase since 12-month data were first calculated in August 2014). Economists had forecast increases of 0.5 percent m-o-m and 6.6 percent y-o-y.