Wholesale prices for June rose more than expected in another sign that inflation is moving at a faster pace than markets had anticipated.
The producer price index, which measures what companies get for the goods they produce, increased 1% from May and jumped 7.3% on a year over year basis. That marked the second month in a row that the PPI set a record for a data series that goes back to 2010.
Economists surveyed by Dow Jones had been looking for a 0.6% monthly increase.
Stripping out volatile food, energy and trade prices, the core PPI increased 0.5%, in line with estimates.
The PPI headline surge comes a day after the Labor Department reported a 5.4% year over year jump in the consumer price index, the biggest move for that measure since 2008.
The producer price index differs from the CPI in that it measures final demand prices that companies get for their goods. The CPI tracks what consumers actually pay at the register.