US wholesale inflation rose sharply last month as Iran oil shock continues to drive up business costs
CNN • • business
Key Points:
- The US Producer Price Index (PPI) rose 1.1% in May, reaching an annual rate of 6.5%, the highest in over three years, driven largely by a war-induced spike in oil prices.
- Wholesale inflation is accelerating at the second-fastest pace on record, with monthly increases matching April's rate and annual figures at their highest since November 2022.
- Core PPI, excluding food and energy, increased 0.4% in May, holding steady at 4.9% annually, while a further refined index excluding trade services rose 0.8%, marking a four-year high.
- Rising wholesale costs may eventually translate into higher consumer prices, though businesses often absorb some increases to protect customers, indicating inflationary pressures will persist in coming months.
- Elevated gas prices contributed to a 4.2% overall inflation rate in May, the highest in three years, impacting consumers' expenses directly.