U.S. PPI surged to the highest level since 2022 in April, with energy costs skyrocketing by 7.8% in a single month, fueling bets on interest rate hikes.
The U.S. PPI increased by 6% year-over-year and 1.4% month-over-month in April, with both figures marking the highest levels since 2022. The PPI has recorded month-over-month increases for eight consecutive months. Rising energy and transportation costs pushed service sector inflation to a four-year high. The market is pricing in approximately a 50% probability of one interest rate hike by the end of 2026.
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