The specter of higher-than-2% inflation has loomed over the economy since the pandemic. But just as it seemed like the Fed had clawed its way out of unpopular rate hikes, a war with Iran has dragged it right back in.
Producer prices climbed 6.5% over the past year, the Bureau of Labor Statistics reported Thursday, the steepest annual jump since November 2022. A day earlier, consumer prices came in at 4.2%, the hottest since 2023. Both were driven by soaring energy costs as the Strait of Hormuz remains choked off.
