# USPPIHits2.5YearHigh

On June 11, the US Labor Department reported May PPI rose 5.2% year-over-year, the highest since November 2022, with a monthly gain of 0.8%, both far exceeding expectations. Energy prices surged 3.9% month-over-month, serving as the main driver. Following last week's hotter-than-expected CPI print, PPI also came in above forecasts, with two consecutive key inflation reports dampening market expectations for Fed rate cuts. Market pricing for a rate hike this year has now risen to about 43%, putting pressure on the three major US stock indices.