U.S. producer prices rose for a second consecutive month in August amid record high energy costs. The U.S. trade deficit narrowed in July, countering expectations for an increase.

The U.S. Labour Department said Tuesday prices paid to factories, farmers and other producers rose 0.6% falling short of the 0.7%increase expected by economists surveyed by Bloomberg News. Producer prices rose 1% in July.

The so-called core measure, which excludes energy and food prices, was unchanged compared with the 0.1% anticipated increase.

Crude oil futures on the New York Mercantile Exchange for the first two weeks of August averaged US$63.55 a barrel, up from $59.54 a barrel during the same period in July. They jumped to a record US$70.85 a barrel on Aug. 30.

The Commerce Department, meanwhile, said that the U.S. trade deficit narrowed unexpectedly in July. The gap in goods and services slipped to US$57.9-billion, countering expectations for an increase to US$59.8 billion. June’s trade gap was revised higher to US$59.5-billion from a previously stated US$58.8 billion.