US PPI surges past forecasts with strongest annual rise since 2022

(Sharecast News) - US producer prices accelerated again in May, according to the Bureau of Labor Statistics, with the headline producer price index rising 1.1% on the month and 6.5% over the year. May's monthly increase matched April's 1.1% gain and followed a 0.7% rise in March, while the annual rate marked the strongest reading since November 2022.

The bulk of the monthly rise came from goods prices, which jumped 2.8% - the largest increase since the series began in 2009 - driven by a 10.7% surge in energy costs. Gasoline alone rose 23.4%, while diesel, jet fuel, plastic resins, industrial chemicals and natural gas liquids also moved higher.

Services prices increased 0.3%, easing from April's 0.7% rise.

Core PPI, which strips out volatile food prices, energy prices and trade services, rose 0.8% for the sharpest monthly increase since March 2022. Over the year, core producer prices were up 5.1%, the largest annual rise since October 2022.









Reporting by Iain Gilbert at Sharecast.com