May’s 6.5% annual rise in the US Producer Price Index marks the sharpest increase in 18 months, exceeding April’s 5.7% gain.
US producer prices rose 6.5% year-over-year in May, accelerating from April’s 5.7% increase. The jump represents the highest reading since November 2022, driven by rising costs across goods and services sectors.
The April-to-May increase outpaced economists’ expectations and follows a period of moderating inflation earlier this year. The core PPI, excluding food and energy, also climbed, signaling persistent price pressures in the production pipeline.
Markets are closely watching the data as it may influence Federal Reserve policy decisions amid ongoing inflation concerns.