Investing.com - Producer price inflation in the U.S. rose more than expected in June, while core prices inched up modestly, official data showed on Wednesday.
In a report, the Commerce Department said that producer prices increased by a seasonally adjusted 0.4% last month, above forecasts for a 0.2% gain, after falling 0.2% in May.
Year-over-year, the producer price index rose at an annualized rate of 1.9% in June, above expectations for a 1.8% increase and down from 2% in the preceding month.
The core producer price index eased up by a seasonally adjusted 0.2% last month, in line with expectations and after falling 0.1% in May.
Core produces prices rose at an annualized rate of 1.8% in June, beating forecasts for a 1.7% gain and after climbing 2% in the preceding month.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Following the release of the data, the U.S. dollar held to gains against the euro, with EUR/USD shedding 0.28% to trade at 1.3531.
Meanwhile, the outlook for U.S. equity markets was higher. The Dow futures pointed to a gain of 0.3% at the open, the S&P 500 indicated a rise of 0.45%, while the Nasdaq 100 signaled an increase of 0.8%.