U.S. producer prices rose more than forecast in June on the soar in the cost of gasoline and other goods, paving the way for a rate hike this year by the Federal Reserve.
The producer price index increased 0.4 percent in June from 0.5 percent advance in May, the Labor Department said on Wednesday. Analysts had predicted a 0.2 percent rise.
Gasoline prices edged up 4.3 percent last month, following a climb of 17 percent a month earlier. Food prices advanced 0.6 percent.
Core prices, which strips out food, energy and trade services, rose 0.3 percent from 0.1 percent drop in May.
The dollar index gained after the report to set a high of 97.13, ahead of Fed Yellen’s testimony to Congress.
The Fed is on track to raise interest rates this year as long as the economy is hosing progress, Yellen said in testimony prepared for the U.S. House of Representatives Financial Services Committee.