US May PPI Surges to 6.5%, Exceeding Expectations for First Time Since November 2022

According to The Kobeissi Letter, the U.S. Producer Price Index (PPI) for May reached 6.5% year-over-year yesterday, surpassing expectations of 6.4% and marking its highest level since November 2022. Core PPI came in at 4.9% annually, versus expectations of 5.4% and the previous month's revised 5.2%. The monthly figures showed Core PPI at 0.4% (expected 0.5%) and headline PPI at 1.1% (expected 0.7%). The stronger-than-expected inflation reading reflects pandemic stimulus-level pressures and comes as ongoing U.S.-Iran tensions continue to drive up oil prices, which may increase expectations for potential Federal Reserve interest rate action.
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