Inflation at the wholesale level moderated more than expected in May, the latest sign that price pressures within the U.S. economy are loosening their grip.
The Labor Department said Thursday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, fell 0.2% in May from the previous month. On an annual basis, prices remain up 2.2% – unchanged from last month and the highest level since April 2023.
Those figures are both lower than the 0.1% monthly increase and the 2.5% headline gain forecast by LSEG economists.
In another sign that suggests high inflation is easing, core prices – which exclude the more volatile measurements of food and energy – were flat for the month. That is lower than both the 0.3% estimate and the gain recorded the previous month.
The figure was up 2.3% on a 12-month basis, slightly lower than expected.
This is a developing story. Please check back for updates.
