Analysts said the indication of building inflation pressures could also complicate calls for the US central bank to lower interest rates, as Trump has demanded.
The Federal Reserve sets its policy independent of the White House. It has held off on cuts so far this year, worried that cutting rates at a time when tariffs are expected to push up prices could risk re-igniting inflation.
But a string of weak job growth, combined with cooler-than-expected inflation, had increased pressure on the bank to give the economy a boost by lowering borrowing costs.
Treasury Secretary Scott Bessent earlier this week called on the Federal Reserve to cut its key lending rate by half a percentage point at its next meeting in September.
“The large upside surprise in producer prices highlights the dilemma the Federal Reserve faces,” wrote Matthew Martin, senior US economist at Oxford Exonomics.
“The big picture remains that inflation is further away from the Fed’s target than the unemployment rate and is likely to climb further over the coming months.”