US producer prices soar 10.8% in May as energy costs spike

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — U.S. producer prices surged 10.8% in May from a year earlier, underscoring the ongoing threat to the economy from a bout of inflation that shows no sign of slowing. Tuesday’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% from a year earlier, and is down from an 11.5% yearly gain in March. The figures indicate that rising prices will continue to erode Americans’ paychecks and play havoc with household budgets in the coming months.