The U.S. Labor Department's Producer Price Index shot up 1.4% in May on a seasonally adjusted basis, its largest jump since last November and an indicator that further inflation is likely in consumer prices in coming months.

The increase followed a 0.2% advance in April and a 1.1% increase in March.At the earlier stages of processing, prices received by producers of intermediate goods rose 2.9% on top of a 0.9% advance a month earlier, and the crude goods index increased 6.7% on top of a 3.2% gain in April.

The surge was again led by the energy sector, with the index for finished energy goods up 4.9%, with gasoline up 9.3%, diesel by 11.2%. Food also was up by 0.8%. The rise in the index for finished goods less foods and energy slowed to 0.2% from 0.4% in the previous month.

Before seasonal adjustment, the PPI for Finished Goods increased 1.6% in May to 179.6 (1982 = 100), putting the year-over-year increase in the unadjusted index at 7.2%.