U.S. producer prices rebounded more than expected in April amid rising costs for goods and services, leading to the biggest annual gain in five years in a sign that inflation pressures were rising.
The Labor Department said on Thursday its producer price index for final demand increased 0.5 percent last month after slipping 0.1 percent in March. The PPI increased 2.5 percent in the 12 months through April, the biggest gain since February 2012, after advancing 2.3 percent in March.
Economists polled by Reuters had forecast the PPI rising 0.2 percent and gaining 2.2 percent from a year ago.
Producer prices are firming as the drag from a strong dollar and lower oil prices fades.
Firming inflation, combined with a tightening labor market could keep the Federal Reserve on track to raise interest rates next month.
The U.S. central bank lifted its short-term interest rate by a quarter of a percentage point in
