# Wholesale prices rose 1.1% in May, more than expected, on surge in energy — News, Sentiment & Analysis

**Source:** TrendWatcher — https://www.trendwatcher.in/topic/wholesale-prices-rose-11-in-may-more-than-expected-on-surge-  
**As of:** 2026-09-12 (UTC)  
**Sentiment:** neutral (50/100)  
**Sources analysed:** 3

As of 2026-09-12, TrendWatcher scores Wholesale prices rose 1.1% in May, more than expected, on surge in energy sentiment as **neutral** at 50/100, based on 3 news sources analysed over the past 24 hours.

## Summary

The Bureau of Labor Statistics reported that the U.S. Producer Price Index (PPI) rose 1.1% in May, exceeding economist expectations of 0.7%. This monthly increase, which matches the growth seen in April, brings the 12-month wholesale inflation rate to 6.5%, the highest level since November 2022. The surge is primarily attributed to a 10.7% increase in energy costs, with wholesale gasoline prices rising 23.4%.

## Key points

- Wholesale prices increased 1.1% in May, driven largely by a 2.8% rise in final demand goods prices.
- Energy costs accounted for approximately 80% of the rise in final demand goods, with wholesale gasoline prices jumping 23.4%.
- Core PPI, which excludes food and energy, rose 0.4% in May.
- The 12-month wholesale inflation rate reached 6.5%, the highest recorded since November 2022.
- Market expectations suggest the Federal Reserve will likely hold interest rates steady at its upcoming meeting.

## Frequently asked questions

### What caused the surge in wholesale prices in May?

The increase was largely driven by a 10.7% jump in energy costs, which accounted for nearly 80% of the rise in final demand goods prices.

### How does the May PPI data compare to economist expectations?

The 1.1% monthly increase in the producer price index was higher than the 0.7% increase that economists surveyed by Dow Jones had anticipated.

### What is the current 12-month wholesale inflation rate?

The 12-month wholesale inflation rate is 6.5%, marking the highest annual headline rate since November 2022.

### How are financial markets reacting to these inflation figures?

Markets are pricing in a near 100% probability that the Federal Reserve will hold interest rates steady at its next meeting, with some expectations of potential rate hikes later in the year.

## Latest coverage

- [Wholesale Inflation Hits Highest Level Since 2022 in May](https://www.trendwatcher.in/article/031a8e23-4f21-4d53-8319-3a9fc23ea5d8) — neutral, 2026-06-11: Wholesale prices rose 1.1% in May, driven by a 10.7% surge in energy costs, marking the highest annual inflation rate since November 2022.
- [Wholesale Prices Surge 1.1 Percent in May Amid Energy Costs](https://www.trendwatcher.in/article/bde5e90f-da88-4383-8b8c-a4543c486bc5) — neutral, 2026-06-11: Wholesale inflation rose 1.1% in May, reaching a 6.5% annual rate. The increase is largely driven by energy costs, keeping Federal Reserve policy on hold.
- [US Producer Prices Rise 6.5 Percent Amid Energy Market Volatility](https://www.trendwatcher.in/article/467e3032-a05e-42c4-bc6b-ef06b221caba) — neutral, 2026-06-11: U.S. producer prices saw their largest annual increase since November 2022 in May, driven by energy supply disruptions following the start of the Iran war.

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Cite as: TrendWatcher, "Wholesale prices rose 1.1% in May, more than expected, on surge in energy — News, Sentiment & Analysis", https://www.trendwatcher.in/topic/wholesale-prices-rose-11-in-may-more-than-expected-on-surge- (retrieved 2026-09-12).