The PPI jumped a revised 1.1 percent in April and another 1.1 percent in May.
Biggest Leap in PPI since 2022
Please consider the BLS Producer Price Report for April 2026.
- The Producer Price Index for final demand rose 1.1 percent in May, seasonally adjusted.
- On an unadjusted basis, the index for final demand increased 6.5 percent for the 12 months ended in May, the largest 12-month rise since moving up 7.4 percent in November 2022.
- Nearly 80 percent of the May advance in final demand prices is attributable to a 2.8-percent increase in the index for final demand goods. Prices for final demand services moved up 0.3 percent.
- The index for final demand less foods, energy, and trade services rose 0.8 percent in May, the largest advance since increasing 0.9 percent in March 2022.
- For the 12 months ended in May, prices for final demand less foods, energy, and trade services moved up 5.1 percent, the largest 12-month rise since jumping 5.5 percent in October 2022.
PPI Final Demand Month-Over-Month Details
- Final Demand: 1.1 percent in May, 1.1 percent in April
- Final Demand Goods: 2.8 percent in May, 1.9 percent in April
- Final Demand Services: 0.3 percent in May, 0.7 percent in April
- Final Demand Food: 0.6 percent, 0.2 percent in April
- Final Demand Less Food and Energy: 0.4 percent in May, 0.7 percent in April
Final Demand Synopsis
- Final Demand Services: The index for final demand services moved up 0.3 percent in May following a 0.7-percent advance in April. Leading the May increase, prices for final demand services less trade, transportation, and warehousing rose 0.7 percent. The index for final demand transportation and warehousing services moved up 2.6 percent. Conversely, margins for final demand trade services decreased 1.1 percent. (Trade indexes measure changes in margins received by wholesalers and retailers).
- Services Detail: Over 40 percent of the May advance in the index for final demand services can be traced to a 4.8-percent rise in prices for portfolio management. The indexes for truck transportation of freight; securities brokerage, dealing, investment advice, and related services; chemicals and allied products wholesaling; food wholesaling; and airline passenger services also increased. In contrast, margins for machinery and equipment wholesaling fell 1.9 percent. The indexes for fuels and lubricants retailing and for residential real estate loans (partial) also moved lower.
- Final Demand Goods: The index for final demand goods moved up 2.8 percent in May, the largest increase since data were first calculated in December 2009. Eighty percent of the broad-based advance can be traced to a 10.7-percent jump in prices for final demand energy. The indexes for final demand goods less foods and energy and for final demand foods also rose, 0.8 percent and 0.6 percent, respectively.
- Goods Detail: Over half of the May advance in prices for final demand goods is attributable to a 23.4-percent increase in the index for gasoline. Prices for diesel fuel, jet fuel, plastic resins and materials, industrial chemicals, and natural gas liquids also rose. In contrast, the index for pork fell 10.1 percent. Prices for residential electric power and for sanitary paper products also declined.
PPI Final Demand Year-Over-Year
PPI Final Demand Notes
- Final Demand: 6.5 percent, highest since 6.4 percent in December 2022
- Final Demand Goods: 10.4 percent, highest since 10.5 percent in October 2022
- Final Demand Services: 4.9 percent, last month’s 5.0 percent was the highest since 7.4 percent in November 2022
PPI Final Demand Services
Services Key Points
- Services represent a dominant portion of the Producer Price Index (PPI) for final demand, accounting for approximately 68% to over 70% of total PPI coverage as of early 2026.
- Services are often the primary driver of PPI inflation, significantly outweighing goods.
- The trend in services is now ominous. Year-over-year services PPI is up 4.9 percent.
Intermediate Demand
- Processed Goods for Intermediate Demand: The index for processed goods for intermediate demand rose 3.5 percent in May, the largest advance since moving up 3.5 percent in March 2021. Over 60 percent of the broad-based May increase can be attributed to a 10.4-percent jump in prices for processed energy goods. The indexes for processed materials less foods and energy and for processed foods and feeds also moved higher, 1.8 percent and 0.7 percent, respectively. For the 12 months ended in May, prices for processed goods for intermediate demand advanced 13.3 percent, the largest 12-month rise since increasing 14.3 percent in August 2022.
- Processed Goods Detail: Nearly a quarter of the May increase in the index for processed goods for intermediate demand can be attributed to a 15.7-percent rise in prices for diesel fuel. The indexes for gasoline, industrial chemicals, jet fuel, plastic resins and materials, and lubricating oil base stocks also advanced. Conversely, prices for pork declined 10.1 percent. The indexes for asphalt and for particleboard and fiberboard also moved lower.
- Unprocessed Goods for Intermediate Demand: Prices for unprocessed goods for intermediate demand moved up 4.9 percent in May following a 1.5-percent advance in April. Half of the broad- based May increase can be attributed to a 6.9-percent jump in the index for unprocessed energy materials. Prices for unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy also rose, 4.8 percent and 2.6 percent, respectively. For the 12 months ended in May, the index for unprocessed goods for intermediate demand moved up 22.2 percent, the largest 12-month advance since increasing 29.2 percent in September 2022.
- Unprocessed Goods Detail: More than two-thirds of the May increase in prices for unprocessed goods for intermediate demand can be traced to an 11.8-percent advance in the index for crude petroleum. Prices for corn; slaughter cattle; raw milk; aluminum base scrap; and hay, hayseeds, and oilseeds also rose. In contrast, the index for natural gas decreased 18.2 percent. Prices for slaughter barrows and gilts and for high-grade recyclable paper also declined.
The Intermediate Demand (ID) Producer Price Index (PPI) measures price changes for goods, services, and construction sold to businesses as inputs for production, excluding capital investment.
Uses of the Data
- Inflation Indicator: Highlights input price pressures that may lead to future changes in final consumer prices.
- Contract Escalation: Businesses use these indices to adjust long-term supply contracts.
- Economic Analysis: Helps economists and businesses measure changing input costs and profit margins.
Except for one-time increases or random fluctuations, intermediate price pressures tend to eventually find their way into final demand cost increases.
What’s happening now is neither temporary nor random. Price pressures will persist as long as the strait is closed.
Fed Behind the Curve?
Q: Is the Fed behind the curve?
A: Yes, obviously.
Q: Why?
A: The Fed still has an easing bias with three dissents.
At a minimum, the Fed’s bias should be towards hiking, not cutting rates. Inflation is clearly not under control.
This of course presumes the Fed can do anything realistic about this. But to be internally consistent, discussion of cutting rates seems ridiculous.
Meanwhile, Trump keeps making matters worse not only with Mideast policy but with tariff policy.
Looking Ahead
This PPI report is probably as bad as it gets for a while. The price of gasoline and crude have been falling.
However, more tariffs are in the pipeline as Trump keeps doubling down with the courts. The new tariffs are higher than the reciprocal tariffs the Supreme Court negated.
Tariffs will filter through to higher prices and destroy jobs.
CPI Highest in Over Three Years
Yesterday, I commented Consumer Price Index CPI Highest in Over Three Years, Another Disaster
Over the last 12 months, the CPI increased 4.2 percent the most since April 2023.
Trump Loves the Inflation
In case you missed it, please note Trump Says “I Love the Inflation”, Literally
In response to a question about the CPI Trump responded “I love the Inflation”
Q&A on Inflation
When asked if he is concerned about the latest inflation numbers that came out this morning [June 10], President Trump responded, “No, I love it. The numbers were great. You know what I really love? I love the inflation.”
Trump keeps giving democrats sound bites for the election. “I love the inflation” is one hell of a sound bite. And it’s in context.
Since the Covid Crisis and the Democrat money dump the purchasing power of the Dollar is now half of the pre-Covid level. Cat litter went from $3.50 to $6.99 in six short years.
I’ve never tried kitty litter, probably like Armadillo. Crunchy on the outside, soft n chewy on the inside. Im going to guess its best eaten straight from the packet. I had no idea times had go so tough in the US.
The curve is more than halfway toward an inflation index during a pandemic that forced massive infusion of dollars into the economy, this time Trump is the pandemic
Looks like not only are our mercenaries dying for the Zionist Epstein Entity, but we’re also importing their inflation.
Spew Bs. Pump up market. Gas prices dropping here 3 days in a row.
Almost time to bomb again.
I bet the Iranians hide after big green days.
My favorite restaurant, Texas Tom’s, stopped putting onion rings in with fries on my fish and chicken basket!
The horror!
And some people have the nerve to say we aren’t suffering from starting this war.
Wait for the day they don’t put in any fish or chicken too, these days are a comin’.
Be honest bud, couldn’t you afford to shed a few pounds?
Shed pounds with the upcoming famine? Not a good idea. Course I’ll probably get ate by the immigrants but whatever.
I love the smell of inflation in the morning…it smells like victory!
Hmm, all that winning?
The long-awaited Trump-branded smartphone has finally arrived, and it appears to be exactly what many suspected: an existing handset in gold drag. iFixit teardown reveals two-year-old, mid-range, Chinese Android
https://www.theregister.com/personal-tech/2026/06/11/trump-phone-has-htc-guts-tremendous-guts-the-best-guts/5254276
And the real kicker is if it hears you criticizing Trump or Israel, it explodes.
If there’s an “easing bias” at the Fed with this inflation, does that mean the weakness in precious metals is transitory?
Absolutely.
All the momentum players who hopped aboard during the moonshot are vacating. Might already be gone now.
don’t worry guys the fed told me they were firmly committed to reaching their 2% goal
Per month 😉
But it’s only transitory … B.S.
so we won, again? ! ?
Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening. Discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others. The Naval Blockade will remain in full force and effect until this Transaction is finalized — Time and place of the signing to be announced shortly.
DONALD J. TRUMP
PRESIDENT OF THE UNITED STATES OF AMERICA
Why is crude oil still below $100 a barrel? Possibly because China has dramatically cut its imports.
https://archive.ph/20260611133521/https://www.wsj.com/business/energy-oil/china-is-propping-up-the-world-economy-by-importing-a-lot-less-oil-f12d7813
Chinese people are driving fewer gasoline-powered cars and taking trains instead of planes. The country is dialing back operations at the plants that turn crude oil into feedstock for materials such as plastics.
This is demand destruction in action.
From CoPilot. Some oil is over $100.
🌍 Crude grades currently priced above $100/bbl (physical delivery)1. Azeri Light — $102.13/bblA light, sweet crude exported from Azerbaijan into the Mediterranean.
2. Mars (U.S. Gulf Coast sour) — $119.96/bblA medium‑sour U.S. Gulf Coast grade that spikes during Middle East disruptions because refiners substitute it for lost sour barrels.
3. DME Oman — $106.22/bblA key Middle East sour benchmark used for Asian deliveries.
4. Mexican Basket — $107.52/bblMexico’s export blend (Maya + Isthmus + Olmeca).
5. Indian Basket — $116.52/bblIndia’s weighted average of its crude imports (Middle East + Russia + others).
6. OPEC Basket — $109.44/bblA composite of 13 OPEC member crude streams.
🛢️ What’s not over $100 todayMost major benchmarks are below $100:
These are the benchmarks you see quoted on financial news, but they do not represent the full physical market.
100% bullshit – even if he believes it. There’s not going to be any &*#)&(&$ “deal”.
and the uranium?
Uranium was ever always only a pretext.
When a barroom bully finds himself staring down the barrel of a snub nose .357 magnum and the bully’s intended victim has that look of a man who will pull that trigger without hesitation, suddenly the bully isn’t so sure that his victim was staring at the bully’s woman or whatever excuse was chosen, suddenly starting a fight doesn’t look like so much fun any more, when it’s his brains that will be spattering the wall.
Iran needs to go and do likewise. A lead pipe to the face, over and over again, that is the only language thugs like the United States and Israel understand.
Unfortunately, you have to be big enough, and have a big enough lead pipe. I don’t think the Persians have a big enough one.
As for the uranium being only a pretext, I’m sure the Israelis don’t see it that way. Let them keep it, and build modern missiles, and they might really have a big enough lead pipe.
Obliterated!!!!
Strikes just called off
Maybe the war’s over again!
Until Satrurday
*yawn*
NEWS: A senior Israeli official tells Channel 12 they are not aware of any agreement. They don’t seem to know what Trump is talking about in his latest post claiming a deal has been “approval” by the “highest level of Iranian leadership.”
Trump is not sane.
Trump is simply a “bullshitter” in Professor Frankfurt’s sense of the term. He says whatever happens to be to his perceived advantage at the moment, indifferent to whether or not there is any element of truth in what he says.
A glorified carnival barker.
I disagree. That was the old Trump – up until a year or two ago. Now he has some sort of dementia that makes him believe whatever he wants to be true. He confabulates.
This is not uncommon with bullshitters. They start to believe their own spiel.
TWO WEEKS, I tell ya
JUST TWO WEEKS
Iran rejects Trump’s new claim that he reached an agreement to cancel tonight’s strikes on Iran as baseless, saying no agreement has been approved at all, and all of Trump’s words should be disregarded like all his previous 38 times deal-imminent announcements over two months, per Tasnim.
Pakistan, the intermediary, says negotiations are not even happening.
Iran and Israel both say they don’t know what Trump is talking about. There is no deal to sign an MOU, let alone begin negotiations.
Confabulate means to talk casually or to fill in gaps in one’s memory with fabricated, misinterpreted, or untrue information that the speaker sincerely believes is true.
Making the story better…
President Donald Trump said Thursday that a peace deal with Iran could be signed as early as this weekend in Europe, comments that mark the latest turn toward diplomacy after days of military strikes.
Vice President JD Vance would attend the signing on behalf of the administration if a deal is reached, Trump said in remarks at the White House. He also praised special envoy Steve Witkoff and son-in-law Jared Kushner, who have worked with Vance to negotiate with Tehran.
Yeah, he’s gonna stay in town for sweaty fights in his back yard
Sell Mortimer SELL!
Moving the Overton window
Rep. Dusty Johnson: “Beef is still an incredible value. We’re not used to paying $8 or $9 for a pound of ground beef, but you compare the nutrition in a pound of beef to a $9 bag of chips, and I would tell you beef still packs a powerful punch.”
Buy 2 bags of chips at regular price, get 2 bags free. At my grocery store this morning.
So eat chips?
Beef nachos!
I’m very well off. I eat whatever I want to eat. The cattlemen have been making their hideous potato chip argument for at least a year. Dusty Johnson is from my home state. I grew up in the livestock business. He’s a moron. Beef is very high because the national cattle herd size has been materially diminished by global warming, and it’s going to get worse and worse. Beef is not a good value. A great solution for the problem is lab-grown beef.
Pretty sure lab-grown beef is not a solution to anything.
Don’t worry about that. The Alpha-Gal syndrome created in a lab somewhere and delivered by ticks will reduce red meat demand.
Soylent Green is an even incredibler value!
Soon, at a butcher’s near you. Unless it’s your turn…
OUCH!
Trump and his sycophants are truly evil people that do not care about the rule of law, serving the American people or the separation of church and state.
On an annualized basis April and May extrapolate to over 13% PPI inflation.
Operation Epstein Fury goes on and the murder and genocide in Gaza, Lebanon and Iran goes on without so much as a peep of sympathy.
I say GET OUT and let them fight their own religious wars.
And I expect that to continue for as far as the eye can see (since oil likely not coming down before the end of the year at the very earliest) so 12-13% could easily be the yearly inflation rate this time next year.
Even worse is that once the inflation genie is out of the bottle on services related items history shows it’s VERY hard to get back in again.
One thing for sure, if anyone is planning on buying a bigger ticket item of any kind the sooner you buy the better because it’s only going to get much more expensive.
And looking forward, we have the continued drawdown of the SPR and drawdown of oil inventories for the refineries hitting at the same time as hurricane season in the Gulf of Mexico.
Hope for the best, but prepare for the worst ~ under Trump and his nightmare regime of religious zealots.
Dont forget some 60-80 percent chance of le nino. Super sized at that. Drought for much of the world next year.
Shouldn’t be a problem because don’t US farmers have lots of extra Soybeans since China isn’t buying them? Those farmers who can store them may make a killing next year off that drought (with Trump taking credit for that windfall – sigh).
That is a nice thought but not very practical since so much of the rice is consumed locally and transporting soy is expensive and fuel intensive. Plus our crappy GMO soy it is not their normal diet.
As far as I know the El Niño is happening and the current is already 1.8 degrees warmer than normal (pushing north).
You are correct that El Niño causes drought in multiple global growing regions including the rice growing regions of India which are already suffering from losses of planted acres because of affordability of fuel and cost or access to fertilizer (thanks to Trump and BiBI’s war).
An epic crisis is likely across Western Asia as 1.3 billion people are directly dependent on the rice crop.
“the Fed’s bias should be towards hiking, not cutting rates. Inflation is clearly not under control. This of course presumes the Fed can do anything realistic about this”
Exactly.
How does the Fed Funds rate affect the price of oil?
How does the rate affect the availability of farm labor?
How does the rate affect the cost of tariffs?
Remember, our class clown says he likes inflation; the more the merrier.
No. He likes “the inflation”.