Producer prices in the USA continued to rise rapidly in May

The US Department of Labor announced the PPI data for May.

Accordingly, the PPI increased by 0.8 percent in May compared to the previous month.

The data, which followed a course in line with market expectations in this period and pointed out that the momentum in producer inflation continued, increased by 0.4 percent in April.

Producer prices increased by 10.8 percent year-on-year in May.

The index, which rose slightly below market expectations, was expected to increase by 10.9 percent in this period, as in April. Producer inflation reached a record level of 11.5 percent annually in March.

Core PPI, which does not include variable food and energy prices, increased by 0.5 percent monthly and 8.3 percent annually in May.

The market expectation for the core PPI was an increase of 0.6 percent monthly and 8.6 percent annually. Core PPI rose 0.2 percent month on month and 8.6 percent year on year in April.

By measuring the prices of inputs used in production, the PPI gives clues about final product prices and headline inflation. The US Federal Reserve (Fed) monitors all inflation indicators, including the PPI.

Analysts stated that producer prices showed a solid rise in a period of increasing energy prices and that the latest data indicate that inflation may remain high for a while.