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.
39 Articles
39 Articles
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.
Coverage Details
Bias Distribution
- 47% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
