The US producer prices rose slightly more than expected in June, achieving its biggest annual growth in 6.5 years. The Labor Department reported on Wednesday that its Producer Price Index (PPI) index grew by 0.3% last month, backed by rising gasoline prices. The index gained 0.5% in May.
In the 12-month period to June, the PPI expanded by 3.4%, which is the biggest growth since November 2011. The production prices grew by 3.1% on an annual basis in May.
The economists forecast that PPI will see an increase of 0.2% on a monthly basis and 3.2% on an annual basis in June.
The core Producer Price Index, excluding food, energy and commerce services, rose by 0.3% last month against May. It has grown by 0.1% in the fifth month of the year.
The inflation gradually accelerates against a labor market that is believed to have achieved almost full employment.
The Federal Reserve’s preferred inflation measure, the Personal Consumer Expenditure (PCE), excluding food and energy, achieved the US central bank target of 2% in May for the first time in six years.
Healthcare services prices have grown by 0.2% on a monthly basis, as a 1.0% increase in outpatient care has offset a slight decline in home doctor and hospital care prices. In May, the cost of healthcare services rose by 0.1%.
The goods prices rose by 0.1% after they advanced 1.0% in May. Last month, their growth was limited due to a 1.1% drop in food prices. The wholesale gasoline prices rose by 0.5% from the previous month, after jumping 9.8% in May.
Food and non-food goods prices rose by 0.3% for the fourth consecutive month, while motor vehicles posted a 0.4% growth in June on a monthly basis.