U.S. producer prices surged 10.8% in May from a year earlier, underscoring the ongoing threat to the economy from inflation that shows no sign of slowing.
Beef is displayed in the meat department at Lambert's Rainbow Market in Westwood, Massachusetts, on June 15, 2021. U.S. producer prices surged 10.8% in May 2022, from a year earlier, underscoring the ongoing threat to the economy from a bout of inflation that shows no sign of slowing.
Energy prices, led by gas, rose 5% just in May from April. Another big driver of the price gains last month was a sharp 2.9% increase in the cost of truck freight hauling, a sign that supply chain problems still aren’t fully resolved. Food costs were unchanged.The figures indicate that rising prices will continue to erode Americans’ paychecks and wreak havoc on household budgets in the coming months.
The Federal Reserve is expected to hike its short-term interest rate by three-quarters of a point on Wednesday, the largest increase since 1994, as it ramps up its efforts to rein in higher prices. Strong consumer spending has pushed up demand for a range of goods and services, which has in turn overwhelmed supply chains, creating shortages in some cases and pushing up prices. Greater demand for travel this spring and summer has also sent hotel and airfare prices soaring.
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