U.S. May PPI Jumps 6.5% YoY, Fastest Increase in More Than Three Years

BlockBeats reported that U.S. producer price inflation accelerated sharply in May, as the war in Iran fueled fresh inflation pressures. The U.S. Bureau of Labor Statistics said Thursday that the Producer Price Index (PPI) rose 6.5% year over year in May, the biggest increase since November 2022, and climbed 1.1% from the prior month. Core PPI, which excludes food and energy, increased 4.9% year over year. The data highlight the growing fallout from the energy shock tied to the closure of the Strait of Hormuz. With the conflict unlikely to end soon, companies are passing through higher energy and transportation costs, pushing up prices across a wider range of goods and services. Following earlier figures showing May consumer prices rising at the fastest pace in three years, the latest PPI print is expected to strengthen market bets that the Federal Reserve will raise interest rates in 2026. With the labor market showing renewed momentum, the Fed is increasingly prioritizing inflation control. (Jin10)