US wholesale prices jumped 1.1% in May as energy costs surged

US producer prices rose more than expected in May, adding to signs that an energy shock is feeding inflation pressures. The Producer Price Index climbed 1.1% from April and 6.5% from a year earlier, the highest annual rate since November 2022, Bureau of Labor Statistics data showed Thursday. Much of the increase came from goods prices, which rose 2.8%, led by a 10.7% jump in energy and a 23.4% surge in wholesale gasoline. Excluding food and energy, core PPI rose 0.4% on the month. The data followed Wednesday's report showing consumer inflation accelerated to 4.2% in May. Markets now see the Federal Reserve holding rates at its next meeting, with no cuts priced through the rest of the year.