Wholesale prices rose 1.1% in May, more than expected, on surge in energy
The producer price index increased a seasonally adjusted 1.1% in May, putting the 12-month wholesale inflation rate at 6.5%, the highest since November 2022.
Excluding food and energy, the so-called core PPI accelerated 0.4%, compared with the consensus view of 0.5%, indicating that rising fuel prices are causing much of the inflationary burden.
Wholesale prices are frequently revised significantly from month to month but that is seldom followed-up.
According to this report, core wholesale prices increased last month at a somewhat less fearsome rate, and this month is about the same as that revision.
Should I get excited when it's not 5.2% when it's still pretty awful?
I still expect increases in energy costs to act as a screen for producers to increase prices more than warranted in order to realize higher profits.
My latest lube, oil, and filter cost me $83, $30 of which was labor. The specific oil used retails for $7.99/quart. My discount was $0.24/quart lol.
But in 2021 the very same oil retailed for $3.99/quart.
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