The Labor Department reported on Thursday the U.S. producer-price index (PPI) rose 1.0 percent m-o-m in July, the same pace as in June.

For the 12 months through July, the PPI surged 7.8 percent after an unrevised 7.3 percent climb in the previous month. That represented the largest increase since 12-month data were first calculated in November 2010. 

Economists had forecast the headline PPI would increase 0.6 percent m-o-m last month and 7.3 percent over the past 12 months.

According to the report, nearly 3/4 of the July gain in the final demand index can be traced to a 1.1-percent m-o-m advance in prices for final demand services. In addition, the index for final demand goods increased 0.6 percent m-o-m.

Excluding volatile prices for food and energy, the PPI rose 1.0 percent m-o-m and climbed 6.2 percent over 12 months. Economists had forecast increases of 0.5 percent m-o-m and 5.6 percent y-o-y.