US wholesale prices picked up more than expected in June, according to government data released Friday, on the back of services costs.

The producer price index (PPI) rose by 0.2 percent last month, while an initially-reported decline in May was revised upwards, said the Labor Department.

The figures come despite a cooler than expected consumer inflation reading which fanned hopes of the US central bank cutting interest rates as soon as in September.

The Federal Reserve has been battling to bring stubborn inflation back to its longer-term two percent target by keeping rates high.

On Thursday, government data showed the consumer price index -- a key gauge of inflation -- rose 3.0 percent from a year ago, a slowdown from 3.3 percent in May.

But in the PPI report, a 0.6 percent increase in services costs bumped the overall index higher, the Labor Department said.

From a year ago, PPI rose 2.6 percent in June, the largest gain since increasing 2.7 percent in March 2023, the report added.

But an underlying measure stripping out food, energy and trade services was unchanged in June after a 0.2 percent rise in May.

For now, analysts are expecting the Fed to signal in its end-July meeting that it intends to lower rates in September.

In a media interview on Thursday, San Francisco Fed President Mary Daly said: "I do think with the incoming information on inflation, growth and the labor market, some policy adjustments are likely to be warranted."