The U.S. Bureau of Labor Statistics announced on Tuesday (14th) that the U.S. producer price index (PPI) increased slightly in May, up 10.8% from the same period last year, lower than market expectations of 10.9% and a revised 10.9% in April, excluding the The core PPI, including food and energy, rose 8.3% y/y in May, below market expectations of 8.6% and a revised 8.6% in the previous month.
On a monthly basis, the monthly growth rate of PPI in May was 0.8%, in line with market expectations, but higher than the revised value of 0.4%, highlighting the continued inflationary pressure in the overall economy, which may prompt the Federal Reserve (Fed) to actively raise interest rates; May The monthly growth rate of core PPI was 0.5%, lower than market expectations of 0.6% and higher than the revised previous value of 0.2%.
Looking at the details of the index, nearly two-thirds of the increase in PPI in May was driven by rising commodity prices, especially the energy sector; the final food price index was unchanged from the previous month, mainly due to the decline in beef and pork prices.
Services prices rose 0.4% in May after falling in April. Nearly 30% of the increase was due to higher trucking prices, as well as other breakdowns such as wholesale of machinery and equipment, wholesale of chemicals and related products, and retail of automobiles and components. rise. In contrast, fuels and lubricants retail profits fell 21.7%, while portfolio management and room rental indexes also fell.
While some commodity prices have retreated from their April highs, broader inflationary pressures do not appear to be easing anytime soon, with intermediate demand prices still well above overall levels.
The conflict between Russia and Ukraine continues to disrupt the global supply of food and energy, and factors such as the epidemic and labor shortages may continue to disrupt the supply chain. In addition, corporate profits remain under pressure as the gap between the consumer price index (CPI) and PPI remains significantly lower than that.
The US announced last week that CPI accelerated to a 40-year high in May, shattering hopes that inflation will begin to slow.
Now, coupled with the latest high PPI data, it means that US inflation will last longer than most economists and the Fed had previously estimated, which may lead the Fed to consider a larger rate hike.
JPMorgan Chase, Wells Fargo and many other Wall Street investment banks expect the Fed to raise interest rates by 3 yards (75 basis points) this week, the largest rate hike since 1994.
Before the deadline, U.S. stocks were encouraged by the slowdown in PPI growth in May.Dow Jones Industrial Averageup 0.03%,NasdaqThe index rose nearly 0.3%,S&P 500 Indexrose nearly 0.2%,half feeThe index rose nearly 0.9 percent.US dollar indexNumber rose to 105.15, U.S.10-year Treasury yieldContinued to climb to 3.385%.