U.S. producer prices rose last month at the quickest pace since November 2022, driven by climbing energy prices

ByPAUL WISEMAN AP economics writer

June 11, 2026, 8:41 AM

WASHINGTON - U.S. producer prices increased last month at the fastest rate since November 2022, driven by a sharp rise in energy prices following the onset of the Iran conflict.

The Labor Department announced Thursday that its producer price index, which measures inflation before it reaches consumers, surged 6.5% from May 2025. It also advanced 1.1% from April, matching the prior month's gain. Wholesale gasoline prices jumped over 23% from April to May and nearly 70% from a year earlier.

Inflationary pressures, heightened by the energy shock from the Iran conflict, are frustrating Americans five months before midterm elections that will decide whether President Donald Trump's Republicans retain full control of Congress.

Excluding volatile food and energy prices, core wholesale prices rose 0.4% from April and 4.9% from May 2025.

The wholesale inflation figures followed the Labor Department's report the previous day that consumer prices climbed 4.2% in May from a year earlier, the most in three years. Gasoline prices were up nearly 41% from May 2025. Airfares increased almost 27%.

Inflation remains well above the Federal Reserve's 2% target. The central bank is expected to hold its benchmark interest rate steady at its meeting next week. Yet financial markets anticipate the Fed could raise rates by the end of the year to curb price growth.

After the United States and Israel struck on Feb. 28, Iran closed the Strait of Hormuz, triggering the largest oil supply disruption in history. Energy prices soared. S&P Global Energy warned Thursday that U.S. crude oil inventories are depleting as the summer driving season approaches.

"The bottom line is that U.S. inventory levels remain above estimated minimum operating thresholds," said S&P Global Energy's Aaron Brady. "However, with continued disruption to Middle East flows, draws are likely to extend into the third quarter, even in the event of a near-term diplomatic resolution." More substantial, ongoing drops in inventories "would likely signal entry into a 'danger zone' for the U.S. refining system."