U.S. producer prices increased more than expected in June amid rising costs for energy products, but underlying producer inflation appeared to have peaked, Reuters reported. The producer price index for final demand climbed 1.1% last month after rising 0.9% in May, the Labor Department said on Thursday. In the 12 months through June, the PPI increased 11.3%after advancing 10.9% in May. A 2.4% rise in goods prices accounted for three quarters of the increase in the PPI. Goods prices gained 0.4% in May. Nearly 90% of last month rise in goods prices was attributed a 10.0% jump in energy prices. There were strong increases in the prices of gasoline, diesel fuel, electric power and residential natural gas. Wholesale food prices edged up 0.1%. The cost of services rose 0.4% after climbing 0.6% in May. Economists polled by Reuters had forecast the PPI rising 0.8% and increasing 10.7% year-on-year. The government on Wednesday reported an acceleration in consumer prices in June, with the annual rate posting its largest increase since late 1981. Inflation is soaring, fueled by snarled global supply chains and massive fiscal stimulus from governments early in the COVID-19 pandemic.
