US Wholesale Prices Jump 1.1% in May, Highest Since 2022

By Danny Kontos

June 13, 2026

12:52 AM

3 min read

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Key Points

Energy prices jumped 10.7% month-over-month, the largest increase on record.

Year-over-year PPI rate hit 6.5%, highest since November 2022.

May marked ninth consecutive monthly PPI increase, showing persistent wholesale inflation.

Core prices excluding energy grew 0.4% monthly, below expectations of 0.5%.

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US wholesale prices surged 1.1% in May, beating expectations of 0.7% growth, according to the Bureau of Labor Statistics. The year-over-year rate hit 6.5%, the highest since November 2022. Energy prices drove the gain with a record 10.7% monthly jump. This data matters because wholesale inflation often flows through to consumer prices, affecting purchasing power and influencing central bank policy decisions.

Energy Prices Hit Record Highs

Energy prices surged 10.7% month-over-month in May, the largest monthly increase on record. Gasoline jumped 23.4% (up 69.5% year-over-year), while diesel fuel climbed 15.7% (up 105.9% year-over-year). Home heating oil and distillates rose 16.3% (up 87.0% year-over-year). This was the fourth consecutive monthly energy gain, reflecting Middle East tensions that disrupted oil supply flows. Natural gas liquids increased 15.6% (up 37.5% year-over-year), though residential electric power fell 0.2%.

Core Prices Remain Elevated Despite Moderation

Producer prices excluding food and energy grew 0.4% month-over-month in May (4.9% year-over-year), below the expected 0.5% increase. A broader core measure—producer prices less food, energy, and trade services—advanced 0.8% (5.1% year-over-year), marking the strongest of 13 straight monthly gains. Food prices rose 0.6% (2.6% year-over-year), the third monthly increase in four months. These figures reinforce elevated inflationary pressures on both producer and consumer sides.

Ninth Straight Monthly Gain Signals Persistent Pressure

The May PPI marked the ninth consecutive month of increases, showing no relief in wholesale inflation. The year-over-year rate of 6.5% is the highest since November 2022, up from 5.7% in April and 2.7% in May 2025. Historical PPI data shows this acceleration mirrors the energy-driven shocks hitting global markets. Central banks including the ECB have already responded by raising rates to combat inflation transmission.

What This Means for Policy and Markets

The strong May PPI data complicates the outlook for the Federal Reserve and other central banks. Higher wholesale prices typically flow through to consumer inflation within weeks or months. The ECB raised rates 25 basis points on June 12 in response to energy-driven inflation. The Fed faces a balancing act: tightening to fight inflation risks slowing growth, while loose policy risks letting price pressures accelerate further.

Final Thoughts

US wholesale inflation hit its highest annual rate since November 2022, driven by record energy spikes. With nine straight monthly gains and core prices elevated, central banks face mounting pressure to contain price growth despite economic slowdown risks.

FAQs

Why did energy prices jump so sharply in May?

Middle East tensions disrupted oil supply through the Strait of Hormuz, a critical global shipping route. Gasoline and diesel prices surged as supply concerns intensified.

How does wholesale inflation affect consumers?

Wholesale price increases typically flow to retail prices within weeks. Higher PPI often signals coming consumer price increases, reducing household purchasing power.

What is the Producer Price Index?

The PPI measures inflation at the wholesale level before goods reach consumers, tracking prices paid by producers for raw materials and finished goods.

Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.

About Author

Danny Kontos

Co Founder

Danny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.