Inflation in wholesale prices accelerated last month, the Labor Department said Thursday, in a report closely watched for its implications for the Fed's interest-rate decision next week.

-- The producer price index rose by 0.4% last month, versus its 0.1% increase in July. The reading was in line with economists' forecasts.

-- Over the 12 months through August, producer-price inflation was 5.4%.

Some of the report's figures get inserted into a separate inflation calculation that the Federal Reserve relies on: the personal-consumption expenditures price index. The PCE inflation reading for August is seen as the key determinant of whether officials will vote to raise interest rates next week.

Economists will be using the PPI data we just got to update their forecasts for that PCE reading. We'll post an update later this morning when they have sent around their estimates.

PCE forecasts will get an even more important update tomorrow morning, when they can incorporate the August consumer-price index data as well.