The Producer Price Index for final demand jumped 1.1% month-over-month in May 2026, pushing the year-over-year increase to 6.5%. That’s the fastest annual pace since November 2022, and the culprit is about as subtle as a flare over the Strait of Hormuz.
Gasoline prices surged 23.4% in a single month, a direct consequence of supply disruptions tied to the US-Iran conflict that escalated in late February.
The numbers tell a brutal story
May’s PPI data actually represents a slight cooldown from April, which posted an even steeper 1.4% monthly increase and a 6% year-over-year gain. That April reading was the biggest monthly surge since March 2022, back when the world was still digesting Russia’s invasion of Ukraine and the commodity shock that followed.
Gasoline prices have risen approximately 40.5% year-over-year. Since the Iran conflict intensified in late February, they’ve climbed more than 50%.
