Wholesale prices rose 1.1% in May, more than expected
Energy-driven wholesale prices jumped 1.1% in May, and economists said the increase could keep pressure on the Federal Reserve.
- On Thursday, the Labor Department reported the Producer Price Index jumped 6.5% from May 2025, marking the fastest wholesale inflation pace since November 2022 as energy costs surged.
- Inflationary pressures intensified following the energy shock caused by the Iran war, as closure of the Strait of Hormuz disrupted global oil supplies and fed through pricing pipelines.
- Gasoline prices surged 23.4% in May, while the Bureau of Labor Statistics noted that a 10.7% rise in final demand energy accounted for roughly 80% of the entire goods increase.
- The central bank is expected to leave its benchmark interest rate unchanged at next week's meeting, though Stephen Brown, chief North America economist at Capital Economics, supports a rate hike by year-end.
- S&P Global Energy warned that crude oil inventories are drying up as summer driving season approaches, with Aaron Brady cautioning that further sustained drops would signal entry into a "danger zone" for refineries.
47 Articles
47 Articles
The production price index (PPI), a measure of wholesale inflation in the United States, reached 6.5% per year in May, its highest level in more than three years, according to official figures published on Thursday. Inflation has rebounded strongly in the United States since March after the outbreak of the war in the Middle East, which has triggered oil prices and its derivatives. The PPP rose 6.5% in the 12 months ending in May, reported the Bu…
Producer Price Inflation Hits 6.5%, But the Fed May Still Pause Rate Hikes -- Here’s Why
The inflation story just got another plot twist. Fresh data from the U.S. Bureau of Labor Statistics showed May producer price inflation (PPI) jumped 6.5% year over year, higher than expectations of 6.4% and marking the highest reading since November 2022. On the surface, that sounds like a flashing red warning sign for the Federal ... Producer Price Inflation Hits 6.5%, But the Fed May Still Pause Rate Hikes — Here’s Why
US manufacturers demand significantly higher prices for their goods. Trade is likely to extend some of the increased costs – and consumers will have to pay more.
Producer Inflation Jumps To 6.5%, Highest Since December 2022 - State Street SPDR S&P 500 ETF Trust (ARCA
The headline Producer Price Index climbed from 5.7% year-over-year in April to 6.5% in May, topping economist expectations of 6.4% — the hottest reading since December 2022.
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