CryptoWorld News, the U.S. Producer Price Index (PPI) for May increased by 6.5% year-over-year, the largest gain since November 2022, and rose 1.1% month-over-month. The core PPI, excluding food and energy, increased by 4.9% year-over-year. The report shows that the energy price shock caused by the closure of the Strait of Hormuz is increasingly damaging the U.S. economy. As the conflict is difficult to resolve in the short term, businesses are passing higher energy and transportation costs onto consumers, leading to rising prices for other goods and services. Coupled with earlier data this week showing that consumer prices in May rose at the fastest pace in three years, Thursday’s PPI report may further reinforce market expectations of a Fed rate hike in 2026.