Washington, DC, June 13, 2006--Producer prices increased 0.2% in May as energy prices moderated, but core prices inched higher amid signs that inflationary pressures are growing.
The Labor Department said Tuesday prices for finished goods rose 0.2%, while the core PPI--which excludes food and energy prices--rose 0.3%.
The results were close to expectations of economists. In the past year, the PPI is up 4.5%, the fastest year-over-year gain since January.
The core PPI is up 1.5% in the past year. While prices for finished goods were relatively tame, prices for goods under production jumped.
Intermediate goods prices increased 1.1%, the biggest gain since October. Crude goods prices increased 2%, also the largest since October.
