US producer prices rise more quickly than expected in May
Wholesale prices in the US rose more quickly-than-expected last month, on the back of almost across-the-board increases.
Total final demand prices rose by 0.5% versus April and by 3.1% when compared to the same month one year ago, according to the Bureau of Labor Statistics.
Economists had forecast an increase of 0.3% month-on-month and a year-on-year rise of 2.9%.
Excluding food, energy and trade, prices were only 0.1% higher month-on-month, with 'core' goods prices excluding food and energy up by 0.3%.
The rise in core goods prices was led by a 1.1% jump in those for computers and a 0.6% increase in those of light trucks.
Stoking price pressures, the cost of energy jumped by 4.6% month-on-month, while that of food rose by just 0.1%.
Within services, trade prices increased by 0.9% on the month and those of transportation and warehousing by 0.7%.
Commenting on the data, Ian Shepherdson at Pantheon Macroeconomics wrote: "Overall, core PPI inflation has levelled-off at 2-1/2% y/y in recent months, thanks to favourable base effects, but the monthly run rate is consistent with the y/y pace rising to 3% - a seven-year high - as soon as August. As recently as August 2016, core PPI inflation was under 1%, so the upturn has been quite marked, and it isn't over yet."