U.S. producer prices post largest gain since 2012

U.S. producer prices for May posted their biggest increase in almost three years with a rise in the cost of gasoline and food, suggesting a downward trend in pricing is nearing its end, according to Reuters.

The U.S. Department of Labor reported Friday the producer price index for final demand increased 0.5 percent last month – its largest gain since September 2012. The growth comes on the heels of a 0.4 percent decline in April.

Gasoline prices jumped 17 percent in May, the largest increase since August 2009. Food prices ticked up 0.8 percent, marking the biggest gain in over a year and breaking a five-month streak of declines.

A strong American dollar is also contributing to a gradual uptick in producer prices, gaining 13.2 percent against currencies of major U.S. trading partners since June 2014.

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