Prices paid to U.S. producers surged in May, underscoring persistent inflationary pressures across the economy that are likely to keep the Federal Reserve aggressively raising interest rates.

The producer price index (PPI) for final demand increased 0.8 percent from April and 10.8 percent from a year earlier, Labor Department data showed Tuesday. That followed a 0.4 percent advance in the prior month.

Nearly two-thirds of the May increase was due to an increase in goods prices, especially energy. Excluding food and energy, the so-called core PPI was up 0.5 percent in May and rose 8.3 percent from May 2021.

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