A report released by the Labor Department on Tuesday showed producer prices in the U.S. increased by more than expected in the month of May.
The Labor Department said its producer price index for final demand advanced by 0.8 in May after climbing by 0.6 percent in April. Economists had expected another 0.6 percent increase.
Excluding prices for food, energy, and trade services, core producer prices rose by 0.7 in May, matching the increase seen in the previous month. Core prices were expected to rise by 0.5 percent.
Compared to the same month a year ago, producer prices in May were up by 6.6 percent, reflecting the largest increase since 12-month data were first calculated in November 2010.
The annual rate of core producer price growth also accelerated to a record high of 5.3 percent in May from 4.6 percent in April.