The Labor Department reported on Thursday the U.S. producer-price index (PPI) rose 0.4 percent m-o-m in May, following an unrevised 1.3 percent m-o-m drop in April.

For the 12 months through May, the PPI decreased 0.8 percent, following a 1.2 percent decline in the previous month.

Economists had forecast the headline PPI would increase 0.1 percent m-o-m but drop 1.2 percent over the past 12 months.

According to the report, the May advance in the final demand index was attributable to a climb in prices for final demand goods (+1.6 percent m-o-m, the largest increase ever), which more than offset a fall in prices for final demand services (-0.2 percent m-o-m).

Excluding volatile prices for food and energy, the PPI edged down 0.1 percent m-o-m but rose 0.3 percent over 12 months. Economists had forecast a decline of 0.1 percent m-o-m and a gain of 0.4 percent y-o-y.