July 14 (UPI) -- For the second time in as many days, new government figures released Thursday showed that inflation is still running high across the U.S. economy -- despite falling gas prices.
The Labor Department said in its monthly update that inflation for producers -- the cost of goods at the wholesale level before they reach consumers -- was up 1.1% from May to June, and 11.3% compared to June 2021.
The annual figure is the highest since the department reported a 11.6% year-to-year increase in March.
Traditionally, inflation is influenced most by energy prices, which have been at record levels this year. Thursday's report, however, doesn't fully reflect the fact that gas prices nationwide have fallen 41 cents per gallon over the past month, according to AAA. On Thursday, it said the national average was $4.60.
The Producer Price Index on Thursday noted that more than half of the inflationary increase for June is attributable to gas prices, which were up more than 18% in June. Natural gas was also a significant factor in the increase.
AAA's national average for prices at the pump reached a record high $5.01 in June and part of their decline continued into July -- meaning that the department's next update will account for the full decline in prices.
"Nearly 90% of the June increase can be traced to a 10% jump in prices for final demand energy," the department noted.
The Producer Price Index was released one day after another major official inflation gauge -- the Consumer Price Index -- showed that inflation at the retail level was up 9.1% over the 12 months ending in June.
