U.S. wholesale inflation saw a welcomed — albeit unexpected — regression in May, according to the latest Producer Price Index issued by the U.S. Bureau of Labor Statistics.
Tracking average price shifts at the wholesale level before they reach consumers, the Bureau’s May PPI showed that its seasonally adjusted PPI for final demand declined 0.2% during May compared to April.
Economists polled by the Wall Street Journal had forecasted that the PPI would tick up by 0.1% following a sharp 0.5% gain in April.
Most of the May decline was driven by a 0.8% monthly decline in the index for final demand goods, which was driven by a 7.1% slide in price for gasoline.
Overall, May’s reading indicated that inflation pressures are easing.
U.S. Producer Price Index for Final Demand: Month-over-Month
source: tradingeconomics.com
Year-over-year, May’s PPI increased 2.2%, likewise short of WSJ forecasts of 2.5%.
U.S. Producer Price Index for Final Demand: Year-Over-Year
source: tradingeconomics.com
Excluding volatile food and energy prices, May’s core PPI reading rose 0.3% from April, which was in line with forecasts.
See the Bureau’s full May PPI report here.
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