Hormuz Energy Shock Lifts Producer Inflation To 6.5%, Highest Since December 2022 (UPDATED)

Producer prices accelerated to 6.5% year-over-year in May, the highest since December 2022, driven primarily by a Strait of Hormuz energy shock. The headline PPI exceeded expectations of 6.4%, with gasoline prices surging 23.4%. Despite the hot inflation reading, stock futures held gains, with the S&P 500, Nasdaq 100, and Dow Jones all rising modestly in early Thursday trading.