Producer prices up twice expectations
Index jumps 1.8% in June on large rise in energy prices. Sharpest gain since November 2007.
WASHINGTON (Reuters) -- U.S. producer prices jumped by twice as much as expected in June on a big rise in energy prices, a government report showed Tuesday.
The Producer Price Index, which measures prices received by farms, factories and refineries, increased by 1.8%, the steepest gain since November 2007, the Labor Department said.
Core prices, which strip out volatile food and energy costs, rose a much greater-than-expected 0.5%, boosted by car and truck sales.
Analysts polled by Reuters were expecting a 0.9 % rise in overall producer prices and a 0.1% increase in the core PPI.
Energy prices rose by 6.6% as gasoline costs surged 18.5 %. Both were the biggest rises since November 2007.
Light truck prices rose 3.4%, the largest gain since November 2006, while passenger car prices increased 2%, the steepest rise since September of that year.