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US Producer Price Index Posts 1.1% Jump in May Amid Energy Price Surge

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The US Producer Price Index for final demand rose 1.1% in May amid a significant surge in energy prices, the Bureau of Labor Statistics said Thursday.

Before adjustments, the index rose 6.5% for the 12 months to end-May, the largest 12-month jump since November 2022, according to a statement.

The Producer Price Index measures the average change in selling prices that US producers receive for their output.

In May, the index for final demand goods gained 2.8% percent, the biggest such jump since data was first calculated in December 2009, the statement said.

"Eighty percent of the broad-based advance can be traced to a [10.7%] jump in prices for final demand energy," the statement said.

"Over half of the May advance in prices for final demand goods is attributable to a [23.4%] increase in the index for gasoline. Prices for diesel fuel, jet fuel, plastic resins and materials, industrial chemicals, and natural gas liquids also rose," it added.

Meanwhile, the indices for final demand goods, except for food and energy, and final demand foods were up by 0.8% and 0.6%, respectively, the statement added.

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