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U.S. producer prices surge in May

Xinhua, June 12, 2015 Adjust font size:

The U.S. producer prices rose the most sharply in nearly three years in May, driven by rising gasoline and egg prices, the latest figures released by the Labor Department showed on Friday.

The Producer Price Index (PPI), a gauge of inflation at the factory gate, rose 0.5 percent in May, following a 0.4 percent decline in April. Gasoline prices hiked 17 percent and the cost of eggs soared 56.4 percent due to an outbreak of avian influenza.

Excluding the volatile food and energy sectors, the so-called "core" PPI edged up 0.1 percent, compared with a 0.2 percent decline in April. On a year-on-year basis, the PPI declined 1.1 percent, the fourth straight 12-month decrease.

The low inflation pressure is a key factor for the U.S. monetary policy maker to remain hesitant on raising the ultra-low interest rate. The International Monetary Fund (IMF) recently said the low inflation or deflationary pressure seemed to be a tough task for the U.S. economy, thus it suggested the U.S. Federal Reserve not raise interest rate till the first half of 2016. Endi