The U.S. Bureau of Labor Statistics said the final-demand Producer Price Index rose 1.1 percent in May and 6.5 percent year over year, the biggest annual increase since November 2022. Energy drove the bulk of the gain, with gasoline surging 23.4 percent and final-demand goods posting their largest monthly increase on record. Final-demand PPI excluding foods, energy, and trade services rose 0.8 percent in May, while the 1.1 percent headline gain topped the Dow Jones consensus forecast of 0.7 percent. Stronger wholesale inflation is likely to lift consumer inflation measures such as the PCE and complicate the Federal Reserve's effort to return inflation to target.
