US Producer Prices Surge 6.5% Amidst Rising Energy Costs

WHO:

ABC News - The Labor Department reported on producer prices.

Yahoo Finance - Stephen Brown, chief North America economist at Capital Economics, commented on producer prices.

WHAT:

CNN - The Producer Price Index (PPI) is running at the second-fastest pace on record, with the 1.1% increase in monthly inflation matching the rate of increase seen in April, the fastest since March 2022.

ABC News - The PPI's annual rate is the highest since November 2022.

ABC News - When stripping out price changes for “trade services,” the index rose 0.8% in May, a four-year high, and 5.1% annually, the largest rise since October 2022.

Yahoo Finance - The cost of a gallon of regular gasoline has been above $4 since March, according to motor club AAA.

CNN - The Producer Price Index (PPI) rose 1.1% in May, lifting the annual rate to 6.5%.

ABC News - Wholesale gasoline prices surged by more than 23% from April to May and nearly 70% from a year earlier.

Yahoo Finance - Core wholesale prices, excluding food and energy, rose 0.4% from April and 4.9% from May.

ABC News - Consumer prices rose 4.2% in May from a year earlier, the most in three years.

Yahoo Finance - Gasoline prices were up nearly 41% from May 2025, and airfares were up almost 27%.

WHERE:

ABC News - The report pertains to the United States.

WHEN:

ABC News - The PPI jumped 6.5% from May 2025.

ABC News - The Labor Department's report was released on a Thursday.

WHY:

ABC News - Inflationary pressures are frustrating Americans five months before midterm elections that will determine whether Trump’s Republicans keep full control of Congress.

ABC News - The disruption in oil supplies is described as the biggest in history following Iran's closure of the Strait of Hormuz after the U.S. and Israel's attack on February 28.

CNN - The increase in PPI was largely due to a war-driven spike in oil prices.

ABC News - Inflationary pressures were intensified by the energy shock caused by the Iran war.

Yahoo Finance - The disruption in oil supplies occurred after the United States and Israel attacked Iran on February 28.

HOW:

ABC News - S&P Global Energy warned that U.S. crude oil inventories are drying up as the summer driving season approaches, with draws likely to extend into the third quarter, even with a potential near-term diplomatic resolution.

ABC News - The PPI captures inflation before it reaches consumers.

CNN - The PPI is closely watched because several of its categories feed into the Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation gauge.

(UPDATED June 11, 2026 21:41 UTC)

Inflationary pressures are increasingly frustrating Americans as they approach the midterm elections that will decide if Trump’s Republicans maintain full control of Congress. Meanwhile, S&P Global Energy has issued a warning that U.S. crude oil inventories are dwindling just as the summer driving season is set to begin, with expected draws likely to continue into the third quarter. This situation persists despite the possibility of a near-term diplomatic resolution.

(UPDATED June 11, 2026 16:23 UTC)

The Producer Price Index is experiencing its second-fastest pace on record, with a monthly inflation increase of 1.1% that matches the rate seen in April, the highest since March 2022. Additionally, the index's annual rate is the highest since November 2022, and when excluding price changes for trade services, it rose 0.8% in May, marking a four-year high. This surge in inflation is largely attributed to significant disruptions in oil supplies following Iran's closure of the Strait of Hormuz, which has led to dwindling U.S. crude oil inventories as the summer driving season approaches.

(UPDATED June 11, 2026 14:21 UTC)

The Labor Department has reported that the Producer Price Index, or PPI, rose 1.1% in May, bringing the annual rate to 6.5%, largely driven by a surge in oil prices due to the ongoing conflict in Iran. Wholesale gasoline prices skyrocketed by more than 23% from April to May and nearly 70% from a year earlier, while core wholesale prices, excluding food and energy, increased by 0.4% from April and 4.9% from May. Additionally, consumer prices rose 4.2% in May compared to the previous year, marking the highest increase in three years, with gasoline prices up nearly 41% from May 2025 and airfares climbing almost 27%.