WASHINGTON: US producer prices posted another record increase in August, according to government data released Friday, as the world's largest economy grapples with high material costs amid its recovery from the Covid-19 crisis.

The producer price index (PPI) jumped 8.3 percent from August 2020, not seasonally adjusted, the biggest increase since the data was first collected in November 2010, according to the Labor Department report.

Excluding volatile food, energy and trade services, unadjusted PPI rose 6.3 percent year-on-year, also a record leap since the calculation was first made in August 2014.

The jumps wholesale prices were the latest signs that increased demand coupled with supply and labor shortages were fueling US inflation.

"Inflation continues to see the impact of pandemic effects including strong demand and supply constraints," Rubeela Farooqi of High Frequency Economics said.

"The demand impact will likely fade over coming months, but there is more risk from supply chains, if they continue to be disrupted by virus outbreaks."

Compared to July, PPI rose 0.7 percent, slightly more than expected. Much of that was due to a 0.7 percent increase in services, while the index for goods rose one percent, according to the data.

However there were signs the pace of price hikes may be easing. The month-on-month increase was below the one-percent climb seen in July's data.

And excluding food, energy and trade service, prices were up 0.3 percent last month compared to July, a sharp slowdown from the 0.9 percent increase seen in the prior month.