Producer price index rose 11.3% from a year ago in June, near the record 11.6% posted in March;

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Jobless claims jumped to 244,000 last week, the highest level since November 2021.

The Producer Price Index (PPI), which measures changes in the price of goods and services from a producer perspective, came higher than the 10.7% market estimate.

The annual gain in producer prices stood at 10.9% in May.

On a monthly basis, the PPI rose 1.1% in June, also higher than the market expectation of 0.8%. The figure was 0.9% in May.

On a monthly basis, the core measure increased just 0.3%, below the 0.5% Dow Jones estimate. Headline PPI rose 1.1% on the month, higher than the 0.8% estimate.

The release comes one day after the BLS reported that the consumer price index, which measures final-sale prices in the marketplace, surged 9.1%, the highest 12-month gain since November 1981.

In a separate Labor Department report, weekly jobless claims rose to 244,000 for the week ended July 9, the highest number since Nov. 20, 2021. Continuing claims, which run a week behind the headline number, fell to 1.33 million, a decline of 41,000.

There were a few optimistic signs in the PPI report — prices for chicken eggs, for instance, tumbled 30.2%, while iron and steel scrap prices were off 10.4%.

However, Federal Reserve officials are expected to keep pressing forward on interest rate hikes to bring inflation down closer to their longer-run 2% goal.

Following the CPI release, traders were pricing in an 86% chance the central bank, at its meeting later this month, will raise benchmark interest rates by a full percentage point. That would be the largest such increase since the early 1980s.

“The index for final demand goods moved up 2.4% in June, the sixth consecutive rise. Nearly 90% of the June increase can be traced to a 10.0% jump in prices for final demand energy,” said the statement.

Core producer prices, which exclude food, energy, and trade, moved up 0.3% in June, compared to the previous month’s 0.4%.

Core PPI in June increased 6.4% on an annual basis, following a 6.7% year-on-year gain in May.

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