U.S. producer prices increased slightly more than expected in August amid higher costs for services, but the trend remained consistent with subsiding inflation.

Oil prices rose more than $1 a barrel on Friday, extending their rally and putting crude on course for a weekly gain on the back of output disruptions in the U.S. Gulf of Mexico after Hurricane Francine forced the evacuation of production platforms.

In the US, industrial production costs rose slightly more than expected on a monthly basis, limiting the possibility of a 50 b.p. cut by the Fed

The Producer Price Index for final demand increased 0.2 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in July and rose 0.

Oil prices rose more than $1 a barrel on Friday, extending their rally and putting crude on course for a weekly gain on the back of output disruptions in

Wholesale prices for goods around the country in August grew 0.2% in August, matching Wall Street expectations.

Wall Street opened with a bumpy start Thursday after the producer price index in August rose in line with expectations. CBS News contributor Javier David discusses how the data might affect the Federal Reserve's interest rate decision next week.

The producer price index was expected to increase 0.2% in August, according to the Dow Jones consensus forecast.