Wholesale inflation surged 1.1% in May, more than expected

June 11 (UPI) -- The producer price index for final demand services and products increased by 1.1% in May, pushing annual wholesale inflation to 6.5%, the Bureau of Labor Statistics reported Thursday.

Almost 80% of May's wholesale inflation surge comes from the 2.8% increase in the final demand goods index. The increase in the index for final demand goods was the largest since the bureau began collecting data in 2009.

More than half of the increase in final demand products stems from a more than 23% increase in the gasoline index. Other fuels, including diesel and jet fuel, also increased in price.

The rate of inflation surpassed the Dow Jones consensus estimate which had monthly inflation increasing by 0.7%. The headline inflation rate for the year ending in May is the highest mark since November 2022.

While gas prices rose, the index for wholesale pork fell by 10.1%.

For intermediate demand products, the prices for unprocessed goods increased by 4.9% and unprocessed goods went up 3.5%. Intermediate demand for services rose by 0.5%.

Intermediate demand process goods' increase was the largest one month jump since March 2021. More than 60% of the increase is attributed to a 10.4% increase in prices for processed energy goods. About 25% of the increase to intermediate demand for process goods can be traced to diesel fuel prices rising by 15.7%.

Energy prices also drove the 4.9% increase in unprocessed goods for intermediate demand. Unprocessed energy materials prices rose by 6.9%.

The annual rate for the unprocessed goods index was the largest increase since September 2022.

The Federal Open Market Committee is set to announce its next interest rate decision on Wednesday.

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This story was originally published June 11, 2026 at 9:04 AM.