U.S. wholesale prices rose 0.3% in June, a slight slowing from May.
But the 12-month gain was the fastest in more than six years, adding to evidence that inflation is beginning to rise after years of weak price gains.
The Labor Department says the June increase in its producer price index followed a 0.5% rise in May.
The deceleration reflected a big drop in food costs in June and a much smaller increase in energy prices. However, wholesale prices over the past 12 months have surged 3.4%. That marks the largest annual gain since a 3.7% rise in the 12 months ending November 2011.
The acceleration in wholesale prices is evident in various other price gauges. The government will report on June consumer prices Thursday, but the 12-month increase through May showed a gain of 2.8%. An inflation gauge favored by the Federal Reserve has finally reached the Fed’s 2% target for annual increases after six years of undershooting it.
