[Washington, 14th Archyde.com]–The US Department of Labor’s May wholesale price index (PPI, goods and services for final demand) rose 0.8% month-on-month, up from 0.4% in April. Accelerated. The rise in gasoline prices contributed.
One of the persistent inflation factors could force the Federal Reserve to raise rates by 75 basis points (bp) at the Federal Open Market Committee (FOMC) on 14-15.
The year-on-year rate of increase is 10.8%. It was 10.9% in April.
Economists’ forecasts compiled by Archyde.com were up 0.8% month-on-month and up 10.9% year-on-year.
The core index, excluding the volatile food and energy and trade services sectors, rose 0.5% month-on-month and 6.8% year-on-year. April was up 0.4% month-on-month and up 6.8% year-on-year.
“Wholesale prices continue to rise, putting more upward pressure on consumer prices in the coming months. The FRB wins the fight against inflation,” said Christopher Lupky, chief economist at FWDBONDS (New York). We need to take strong action to show that we are. “
Wholesale gasoline prices rose 8.4%, accounting for 40% of the rise in prices of goods. It was down 3.0% in April. Jet fuel rose 12%. April was up 14.8%. Household natural gas and diesel fuel also rose.
On the other hand, wholesale food prices are flat. Falling beef prices offset the rise in processed chicken products.
Service prices have turned up 0.4%. It was down 0.2% in April. Transportation and warehousing rose 2.9%, accounting for more than half of the overall rise in the service industry. Truck freight traffic rose 2.9%.