U.S.-Iran War Drives Energy Prices Up; U.S. May PPI Rises 6.5% Year-on-Year, Highest in Over 3 Years

U.S.-Iran War Key News

(Central News Agency, Washington, 11th - comprehensive international report) The latest data shows that the U.S. Producer Price Index (PPI) for May rose 6.5% year-on-year, marking the highest single-month annual increase in over three years. This surge reflects the impact of soaring energy prices caused by the U.S. and Israel's military actions against Iran on the American economy.

The U.S. Bureau of Labor Statistics (BLS) reported today that last month's PPI recorded the highest annual increase since November 2022. The May PPI rose 1.1% month-on-month, exceeding the market forecast of 0.7%.

The United States has continued to struggle with high inflation since the outbreak of the COVID-19 pandemic. This pressure has been further intensified by President Donald Trump's return to the White House and his implementation of tariff policies, as well as the U.S.-Israel military conflict with Iran.

Authorities have also revised earlier PPI data from this year. The April year-on-year increase was downgraded from 6.0% to 5.7%, while March was revised upward to 4.3%.

The Bureau of Labor Statistics stated that approximately 80% of the May PPI annual increase stemmed from rising commodity price indices, while the service price index saw only a slight rise.

The core PPI, excluding food and energy, rose 0.4% month-on-month, below the market expectation of 0.5%, indicating that surging fuel prices are the primary driver of inflationary pressure.

Nonetheless, Trump has downplayed the inflation issue, calling it a 'temporary phenomenon' and insisting the economy will rebound quickly after the Middle East conflict ends. However, economists largely believe this outlook is difficult to achieve. (Translation: Hung Chi-Yuan) 1150611