US May PPI Inflation Rises to 6.5%, Highest Since November 2022
May producer price index (PPI) inflation surged to 6.5% year-over-year, exceeding expectations of 6.4% and marking the highest level since November 2022. Core PPI held steady at 4.9%.
The May Producer Price Index (PPI) came in at 6.5% year-over-year, above the forecast of 6.4%. This is the highest reading since November 2022.
Core PPI, which excludes food and energy, remained at 4.9% — in line with April's revised level. The headline figure has now returned to levels seen during the pandemic stimulus period.
In light of the data, market expectations for further interest rate hikes from the Federal Reserve are increasing.
Source: The Kobeissi Letter