US inflationary pressures are accelerating: The Manufacturing PMI input prices index rose to 80 points in May, the highest since mid-2022. This marks the largest monthly increase in manufacturing input costs since June 2022. The index has risen now +18 points since February, at a pace last seen during the historic inflation surge of 2021-2022. The current increase is led by Iran War-related supply constraints and rising energy costs. As a result, surging input costs are driving further job losses and pushing businesses to raise prices on goods and services at the highest rate since August 2022. Furthermore, US manufacturing and services business activity posted only modest growth in May, as rising prices continue to weigh on demand. Stagflation is accelerating.(The Kobeissi Letter)