NEW YORK (CNNMoney.com) -- Prices at the wholesale level rose faster in June, according to a government report, but stripping out food and energy prices left the closely watched inflation reading in line with expectations.

The overall Producer Price Index was up 0.5 percent, up from a 0.2 percent gain in May. Economists surveyed by Briefing.com had forecast a 0.3 percent rise in the overall PPI.

The core PPI, which excludes volatile food and energy prices, rose 0.2 percent, down from the 0.3 percent gain posted in May and in line with estimates.

Energy prices rose 0.7 percent in the report. Food prices saw a larger increase, rising 1.4 percent, compared to a 0.5 percent decline in the May report.

The PPI is a relative volatile report, and it excludes the prices of services, measuring only goods prices. It is generally seen as less important to economists than the Consumer Price Index, which measures prices at the retail level. That is due out Wednesday, and economists are forecasting a 0.2 percent increase in both the overall and core CPI.

Still, the Federal Reserve has said it will base decisions on future interest rate hikes on various economic readings as it tries to combat inflationary pressures in the economy. So the PPI is getting more attention from investors than it might in a typical period.

"I don't think there's anything that will cause us to change our view on what the inflation outlook or what the fed is going to do," said Gus Faucher, director of macroeconomics at Economy.com. His firm is forecasting an 18th straight, and final, rate hike for the Fed at its August meeting.

Fauche said that the jump in food prices doesn't ring any new alarm bells about consumers seeing jumps at the grocery store.

"It takes some times for these things to work their way through the system," he said.

Bond prices slipped following the PPI report, lifting the yield on the 10-year treasury to 5.12 percent from 5.07 late Monday. Yields and bond prices move in opposite directions.

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Related: Eyes on the Fed.