WASHINGTON – US producer prices rose 10.8% yoy in May, underscoring the continued threat to the economy from inflation, which shows no signs of slowing.
Thursday’s Labor Department report showed that the producer price index – which measures inflation before it reaches consumers – rose at a slightly slower pace last month than in April, when it rose 10.9% year on year and up from 11.5% % annually has fallen in March gain.
On a monthly basis, producer prices rose 0.8% in May from April, up from the previous month when they rose 0.4%.
The numbers suggest that rising prices will continue to erode Americans’ paychecks and wreak havoc on household budgets in the coming months. Inflation has been a major political headache for President Joe Biden and Congressional Democrats, forcing the Federal Reserve to a Series of rapid rate hikes intended to slow down the economy and curb price increases.
On Friday, the government reported that inflation – as measured by the consumer price index – rose to a new 40-year high of 8.6% in May, a surprise rise that dashed expectations that price increases might be slowing. The cost of petrol and groceries soared, spurred by Russia’s invasion of Ukraine, but the cost of rent, new and used cars, medical supplies and clothing also rose, evidence that inflation is picking up spread further in the economy.
Producer price data captures inflation earlier in production and can sometimes signal where consumer prices are headed. It also feeds into the Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditure Index.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, transcribed or redistributed without permission.
https://www.local10.com/business/2022/06/14/may-us-producer-prices-soared-108-as-energy-prices-jumped/ May US producer prices rose 10.8% as energy prices surged