Hormuz Energy Shock Lifts Producer Inflation To 6.5%, Highest Since December 2022 (UPDATED)

Editor’s note: This article was updated to add more details and context.
Producer prices accelerated further in May as the Strait of Hormuz energy shock continued to feed through the pricing pipeline, raising fresh concerns over the Federal Reserve’s inflation outlook under new Chair Kevin Warsh.
The headline Producer Price Index climbed from 5.7% year-over-year in April to 6.5% in May, topping economist expectations of 6.4% — the hottest reading since December 2022.
On a monthly basis, wholesale prices rose by a whopping 1.1%, surpassing the 0.7% consensus after April’s 1.1% surge.
Stripping out food and energy, core PPI stayed at 4.9%, missing a rise to 5.4%. Underlying month-over-month pressures rose 0.4%, decelerating from the prior 0.7% and against a 0.5% consensus.
The May print foll