May’s annual PPI rise marks the steepest increase in over three years, driven by surging energy costs and goods prices.
US producer prices rose 6.5 percent year-over-year in May, the largest annual gain since November 2022, when prices climbed 7.4 percent. The monthly index for final demand increased 1.1 percent, matching April’s rise and accelerating from March’s 0.7 percent gain.
Nearly 80 percent of the monthly increase stemmed from goods prices, which jumped 2.8 percent—the sharpest rise since the series began in 2009. Energy prices surged 10.7 percent, with gasoline alone accounting for over half the advance after a 23.4 percent spike. Services prices rose 0.3 percent, slowing from April’s 0.7 percent gain.
A core measure excluding food, energy, and trade services rose 0.8 percent in May, the largest monthly increase since March 2022. Over the past year, this index is up 5.1 percent, the highest since October 2022.