Partly reflecting a sharp jump in energy prices, the Labor Department released a report on Wednesday showing a slightly bigger than expected increase in U.S. producer prices in the month of May.
The Labor Department said its producer price index climbed by 0.4 percent in May after edging up by 0.2 percent in April. Economists had expected prices to rise by 0.3 percent.
The bigger than expected increase in producer prices was partly due to the jump in energy prices, which surged up by 2.8 percent in May. Gasoline prices spiked by 6.6 percent.
Food prices also rebounded during the month, climbing by 0.3 percent in May after falling by 0.3 percent in the previous month.
Excluding food and energy prices, core producer prices rose by 0.3 percent in May after inching up by 0.1 percent in April. Core prices had been expected to tick up by another 0.1 percent.
The increase in core prices partly reflected higher prices for services, which edged up by 0.2 percent following a 0.1 percent uptick in April.
A 1.2 percent jump in prices for trade services was partly offset by a 0.6 percent drop in prices for transportation and warehousing services and a 0.2 percent dip in prices for other services.
Despite the monthly increase, the headline producer price index was down by 0.1 percent year-over-year in May after coming in unchanged in April.
Meanwhile, the annual rate of core producer price growth accelerated to 1.2 percent in May from 0.9 percent in the previous month.
The Labor Department is scheduled to release its more closely watched monthly report on consumer price inflation on Thursday.
The consumer price index is expected to rise by 0.3 percent, while core consumer prices are expected to edge down by 0.2 percent.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.