US producer prices rise 10.8% in May, adding to pressure on Fed

US producer prices surged 10.8 per cent in May from a year earlier, underscoring the ongoing threat to the economy from inflation that shows no sign of slowing.

Thursday's report from the Labor Department showed that the producer price index — which measures inflation before it reaches consumers — rose at slightly slower pace last month than in April, when it jumped 10.9 per cent from a year earlier, and is down from an 11.5 per cent yearly gain in March.

On a monthly basis, producer prices climbed 0.8 per cent in May from April when they increased 0.4 per cent.

The figures