# USPPIHits2.5YearHigh


Back-to-back inflation punches. First CPI. Now PPI. Markets are feeling it.

The US Labor Department just dropped May PPI:
📈 +5.2% year-over-year – highest since November 2022.
📈 +0.8% month-over-month – also blew past expectations.

Sound familiar? It should. Last week, CPI hit a 3-year high.

The common culprit both times? Energy. Up another 3.9% month-over-month in PPI. At the producer level, that pain is real – and it doesn't stay at the factory gate for long.

So here's where we stand:

❌ CPI hot
❌ PPI hot
✅ Rate cut hopes? Cooling fast
⚠️ Rate hike odds this year? Now ~43% (up from practically zero two months ago)

The three major US stock indices are under pressure. No surprise there.

Two inflation reports. One message. The Fed's new chair, Kevin Warsh, walks into his first rate decision on June 17 with both barrels smoking.

Energy keeps winning. The market keeps sweating.
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