U.S. producer prices accelerated in May as energy-driven inflation intensified. The Labor Department said May PPI rose 6.5% YoY — the largest gain since Nov 2022 — and 1.1% MoM; core PPI ex-food and energy rose 4.9% YoY. The report highlights that the closure of the Strait of Hormuz has amplified energy-price shocks; with the conflict unlikely to be resolved in the near term, firms are passing higher energy and transport costs through to other goods and services. Combined with earlier May CPI sh

U.S. producer prices accelerated in May as energy-driven inflation intensified. The Labor Department said May PPI rose 6.5% YoY — the largest gain since Nov 2022 — and 1.1% MoM; core PPI ex-food and energy rose 4.9% YoY. The report highlights that the closure of the Strait of Hormuz has amplified energy-price shocks; with the conflict unlikely to be resolved in the near term, firms are passing higher energy and transport costs through to other goods and services. Combined with earlier May CPI showing the fastest increase in three years and signs of renewed labor-market momentum, the PPI release may reinforce market expectations of Fed rate hikes in 2026.