Producer prices in the United States rose sharply again in May. According to the Labor Department, prices that manufacturers charge for their goods increased by 6.5 percent year-on-year. Economists had on average expected a rise of only 6.4 percent. In the previous month, the rate stood at 5.7 percent.
Compared to the previous month, producer prices rose by 1.1 percent in May – a 0.7 percent increase had been expected. The main driver was energy costs, which surged 36.6 percent year-on-year. The core rate, which excludes energy and food, remained at 4.9 percent, lower than expected.
Producer prices are considered an early indicator for the development of consumer prices. Experts assume that companies will pass on some of the higher costs to customers. The US inflation rate rose to 4.2 percent in May, the highest level since April 2023.
Source: www.spiegel.de
