Another Inflation Indicator Ticks Higher
Regarding this morning’s PPI report:
WASHINGTON (Reuters) – A bigger-than-expected rise in U.S. producer prices in May, the largest in 14 months, and falling jobless claims last week provided fresh evidence Thursday of strength in the world’s largest economy.
Prices received by farms, factories and refiners shot up a hefty 0.8 percent last month, the biggest increase since March 2003, the Labor Department said.
While food and energy prices both rose sharply, the department’s core Producer Price Index, which strips out those volatile costs, also rose a larger-than-expected 0.3 percent, adding to inflation jitters on Wall Street.