The Producer Price Index rose 0.4% over last month.
Excluding food and energy, prices rose 0.2%.
Expectations were for prices to rise 0.2% over last month, and excluding food and energy, also rise 0.2%.
On a year over year basis, prices rose 1.9%, and excluding food and energy prices rose 1.8%.
On a year over year basis, prices were expected to rise 1.9% and excluding food and energy, rise 1.7%.
Following the report, Ian Shepherdson at Pantheon Macro said, “In one line: Much better core than implied by NFIB survey; it can’t last… We expected a much bigger core number in the wake of the further increase in selling prices reported by the NFIB… The underlying economic story here, we think, is that firms are expecting to have to pay rather higher wages and are seeking offsetting prices increases.”
Last month, prices unexpectedly contracted, falling -0.2% and -0.1% excluding food and energy. May’s ex food and energy number, however, was revised up to unchanged.
On a year over year basis, however, May prices rose 2% for both the headline and ex food and energy measures.
This chart from Pantheon also shows the strength in the NFIB selling price index compared to core PPI, with the firm expecting a catch-up in the next few months.
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