U.S. producer prices surged 10.8% in May from a year earlier, underscoring the ongoing threat to the economy from inflation that shows no sign of slowing.
FILE - In this Tuesday, June 15, 2021 photograph, beef is displayed in the meat department at Lambert's Rainbow Market, in Westwood, Mass. U.S. producer prices surged 10.8% in May 2022, from a year earlier, underscoring the ongoing threat to the economy from a bout of inflation that shows no sign of slowing.
Energy prices, led by gas, rose 5% just in May from April. Another big driver of the price gains last month was a sharp 2.9% increase in the cost of truck freight hauling, a sign that supply chain problems still aren't fully resolved. Food costs were unchanged. Strong consumer spending has pushed up demand for a range of goods and services, which has in turn overwhelmed supply chains, creating shortages in some cases and pushing up prices. Greater demand for travel this spring and summer has also sent hotel and airfare prices soaring.. Millions of Americans have enjoyed solid pay raises in the past year, including lower-income workers at restaurants, hotels, and warehouses.