WASHINGTON (AP) — U.S. wholesale prices last month posted the biggest 12-month gain since January 2012, a sign that the strong economy is beginning to rouse inflation.
The Labor Department said its producer price index— which measures inflation before it reaches consumers— rose 3.1 percent from May 2017. The index rose 0.5 percent from April, biggest one-month increase since January. In April, producer prices rose just 0.1 percent.
Energy prices surged 4.6 percent last month from April, the biggest jump in three years.
Core wholesale prices — which excludes the volatile food and energy sectors — rose 0.3 from April and 2.4 percent from May 2017.
The Federal Reserve is expected to raise short-term interest rates Wednesday for the second time this year as inflation hits the central bank's annual 2 percent target.