US producer prices surge 11.3% in June as energy costs spike

By Ovunc Kutlu

ANKARA (AA) - US producer prices were up 11.3% in June on an annual basis, according to official figures released on Thursday.

This marked the largest annual increase since a record 11.6% jump this March, according to a Labor Department statement.

The Producer Price Index (PPI), which measures changes in the price of goods and services from a producer perspective, came higher than the 10.7% market estimate.

The annual gain in producer prices stood at 10.9% in May.

On a monthly basis, the PPI rose 1.1% in June, also higher than the market expectation of 0.8%. The figure was 0.9% in May.

“The index for final demand goods moved up 2.4% in June, the sixth consecutive rise. Nearly 90% of the June increase can be traced to a 10.0% jump in prices for final demand energy,” said the statement.

Core producer prices, which exclude food, energy, and trade, moved up 0.3% in June, compared to the previous month’s 0.4%.

Core PPI in June increased 6.4% on an annual basis, following a 6.7% year-on-year gain in May.