Following yesterday\'s tamer-than-expected consumer price inflation data, the Labor Department released a report on Friday showing producer prices in the U.S. increased by slightly more than expected in the month of June.
The Labor Department said its producer price index for final demand rose by 0.2 percent in June following a revised unchanged reading in May.
Economists had expected producer prices to inch up by 0.1 percent compared to the 0.2 percent dip originally reported for the previous month.
The report also said the annual rate of producer price growth accelerated to 2.6 percent in June from an upwardly revised 2.4 percent in May.
The annual rate of producer price growth was expected to creep up to 2.3 percent from the 2.2 percent originally reported for the previous month.
The slightly bigger than expected monthly increase by producer prices was largely due to an advance by prices for services, which climbed by 0.6 percent in June after rising by 0.3 percent in May.
Prices for trade services led the way higher, surging by 1.9 percent in June following a 0.7 percent increase in May.
The report also said prices for services less trade, transportation, and warehousing inched up by 0.1 percent, while prices for transportation and warehousing services fell by 0.4 percent.
Excluding prices for foods, energy, and trade services, core producer prices were unchanged in June after rising by 0.2 percent in May
The annual rate of growth by core producer prices slowed to 3.1 percent in June from an upwardly revised 3.3 percent in May.
On Thursday, the Labor Department released a separate report showing consumer prices in the U.S. unexpectedly edged slightly lower in the month of June.
The Labor Department said its consumer price index slipped by 0.1 percent in June after coming in unchanged in May. Economists had expected consumer prices to inch up by 0.1 percent.
The unexpected dip by consumer prices came as another steep drop by gasoline prices more than offset a continued increase in shelter costs.
Excluding food and energy prices, core consumer prices crept up by 0.1 percent in June after rising by 0.2 percent in May. Core prices were expected to increase by another 0.2 percent.
The report also said the annual rate of consumer price growth slowed to 3.0 percent in June from 3.3 percent in May. Economists had expected the pace of price growth to decelerate to 3.1 percent.
The annual rate of core consumer price growth also slowed to 3.3 percent in June from 3.4 percent in May. The pace of growth was expected to remain unchanged.