A jump in energy costs pushed up US producer prices more than expected 0.9 percent in May.
A jump in energy costs pushed up US producer prices more than expected 0.9 percent in May.
The 0.9 percent increase followed a 0.7 percent rise in April, the Labor Department said today in Washington. "Core"Â prices, which exclude energy and food costs, rose 0.2 percent.
Economists said the report underscores Federal Reserve concerns that inflation won't moderate as forecast. Growing demand from other countries has pushed up prices for raw materials such as fuel and metals, which resulted in higher costs to customers.
``We have a lot of energy-price pressures that are still working through the system,'' said Stephen Gallagher, chief economist at Societe Generale in New York. ``The Fed is going to be worried.'' Gallagher was the economist who forecasted the jump in wholesale prices correctly.
Economists forecasted that prices paid to factories, farmers and other producers would go up by 0.6 percent.
A major reason of prices growth in May was energy prices, which surged by 4.1 percent after a 3.4 percent rise in April. Only gasoline prices rose by 10.2 percent.
Food prices for the first time of seven months period fell 0.2 percent.
The Labor Department reported separately that the number of Americans filing first-time claims for unemployment benefits held at 311,000 for a second week, pointing to a buoyant labor market. The four-week average became equal to 311,250. - Alla Harutyunyan for HULIQ.COM
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