The Producer Price Index for final demand rose 1.1 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 1.1 percent in April and 0.7 percent in March. (See table A.) On an unadjusted basis, the index for final demand increased 6.5 percent for the 12 months ended in May, the largest 12-month rise since moving up 7.4 percent in November 2022. Nearly 80 percent of the May advance in final demand prices is attributable to a 2.8-percent increase in the index for final demand goods. Prices for final demand services moved up 0.3 percent. The index for final ... (full story)

US businesses’ input costs are rising rapidly as the Iran war’s oil shock continues to ripple through the economy. The Producer Price Index, a closely watched gauge of wholesale inflation, rose 1.1% in May, lifting the annual rate to 6.5%, its highest in more than three years, a new Bureau of Labor Statistics report showed Thursday. PPI serves as a potential bellwether for what consumers could experience in the months to come, though the higher prices businesses pay each other aren’t always fully passed through the supply chain.Economists were expecting PPI to rise 0.6% from April and the annual rate to reach 6.4%. (full story)