U.S. wholesale prices rose 1.1% in May as energy costs climbed

U.S. wholesale prices increased 1.1% in May, according to the Bureau of Labor Statistics, a larger rise than economists had expected. The producer price index now shows a 6.5% increase over the past 12 months, the fastest annual pace since November 2022. Much of the monthly increase came from higher energy costs, with wholesale gasoline prices rising sharply. Core producer prices, which exclude food and energy, rose 0.4%, slightly below forecasts but still indicating broader inflation pressure in the pipeline. The report adds to recent signs of rising inflation and could keep the Federal Reserve cautious ahead of its next policy meeting. Markets are largely expecting the central bank to leave interest rates unchanged in the near term.