The report came a day after government data showed consumer inflation accelerated to 4.2% in May, fueled largely by higher energy prices
Wholesale prices in the United States climbed faster than expected in May, with the producer price index (PPI) at 6.5%, the highest since November 2022.
The new data from the Bureau of Labor Statistics is adding to concerns that inflation pressures are building again.
The PPI, which measures prices businesses receive for their goods and services, rose 1.1% from April.
Much of the rise was driven by soaring energy costs linked to the Iran conflict. Wholesale gasoline prices jumped 23.4% during the month, while overall energy prices increased 10.7%. Final demand goods prices rose 2.8%, the largest increase since the current data series began in 2009.
The report came a day after government data showed consumer inflation accelerated to 4.2% in May, fueled largely by higher energy prices.
The inflation data comes as the Federal Reserve gears up to announce its interest rate decision on Wednesday. Financial markets now see little chance of a rate cut this year.