US producer prices increase 0.4 percent in June; avian flu causes record jump in egg prices

EnergyAssociated Press

Prices for the producers of goods and services rose modestly in June, a sign that broader inflation is being kept in check. But an outbreak of avian influenza caused the cost of eggs to nearly double, as prices soared at the fastest pace ever recorded.

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The Labor Department says its producer price index increased 0.4 percent in June. Inflation remains tame as producer prices have fallen 0.7 percent over the past 12 months due to lower oil and gasoline costs. Gas prices rose 4.3 percent last month but are down 30.3 percent from a year ago.

Chicken egg prices jumped 84.5 percent last month, the largest increase recorded since the government began tracking producer costs in 1937.

Core prices, which exclude energy and food, rose 0.3 percent in June.