The US Producer Price Index (PPI) rose 6.5% year-on-year in May. This marks the highest increase in three years and six months, since November 2022, when prices climbed 7.4%.
The Bureau of Labor Statistics of the US Department of Labor said Friday that the May PPI rose 6.5% from a year earlier. The month-on-month increase of 1.1% matched April's revised figure and far exceeded the analyst forecast of 0.7% compiled by Dow Jones.
The producer price index excluding the volatile energy, food, and trade prices rose 0.8% from the previous month and 5.1% from a year earlier. The index including trade prices but excluding only energy and food prices rose 0.4% month-on-month and 4.9% year-on-year.
Producer prices, also known as wholesale prices, are regarded as a leading indicator of consumer prices, as they are reflected in final consumer goods prices after a certain time lag.
