America’s inflation battle just got tougher.
US wholesale prices surged in May, with the Producer Price Index (PPI) rising 1.1% from the previous month and pushing annual wholesale inflation to 6.5% — the highest level in more than three years.
According to CNN, the sharp increase was largely driven by soaring oil prices linked to the ongoing Iran conflict. The energy shock is raising costs for businesses across the economy and could eventually trickle down to consumers.
Economists had expected inflation to rise, but the latest figures came in hotter than forecast. Core wholesale inflation, which strips out food and energy prices, also remained elevated.
The report follows fresh consumer inflation data showing Americans are already paying more for essentials, especially gasoline.
With energy costs climbing and inflation pressures building, the Iran war is increasingly becoming a major economic headache for businesses, households and policymakers alike, CNN reported. :::
NEWS NOW:
