Wholesale Cost Index Rises for Second Straight Month

Wholesale inflation showed renewed pressure in May. The Federal Reserve Bank of St. Louis reports the Producer Price Index for final demand rose 1.1%, matching a similar increase in April. The index tracks what producers receive for U.S. goods and services before costs reach consumers. It’s the first time since March 2022 that the measure has posted back-to-back monthly gains above one percent. Economists watch the PPI closely because higher wholesale costs can eventually filter into retail prices. The latest increase may add to concerns about inflation’s staying power as businesses weigh whether to absorb costs or pass them along.