The Producer Price Index (PPI) rose 1.1% in May, matching April’s increase and marking a continued acceleration in wholesale inflation, reports the US Bureau of Labor Statistics. On a year-over-year basis, prices were up 6.5%, the largest annual gain since late 2022.
Most of the monthly increase came from a sharp rise in goods prices, especially energy, with gasoline surging more than 23% and diesel, jet fuel, and natural gas also increasing. Food prices rose modestly, while some items like pork and electricity declined.
Services prices increased more slowly by 0.3%, though gains were seen in areas like transportation, portfolio management, and financial services. Trade service margins fell, partially offsetting gains elsewhere.
The BEA shows that rising energy costs are the primary driver of higher producer inflation, with broad but uneven increases across goods and services.
