Wholesale prices rose 1.1% in May, more than expected

Wholesale prices rose less than expected in May, indicating that pipeline inflationary pressures are percolating higher, the Bureau of Labor Statistics reported Thursday. The producer price index, a measure of final demand costs, increased a seasonally adjusted 1.1% on the month, putting the 12-month wholesale inflation rate at 6.5%. Economists surveyed by Dow Jones had been looking for a monthly move of 0.7%. The annual headline inflation rate was the highest since November 2022. However, excluding food and energy, so-called core PPI accelerated 0.4%, compared to the consensus view of 0.5%, indicating that rising fuel prices are causing much of the inflationary burden. This is breaking news. Please refresh for updates.