Declining May Wholesale Inflation Shows More Easing of Price Pressures
1 hr 37 min ago
Prices paid at the wholesale level took a surprising turn lower in May, providing more evidence to Federal Reserve officials that price pressures continue to ease.
Census Bureau data showed the Producer Price Index (PPI) for May dropped 0.2% when compared with April, less than the slight increase economists had forecasted.
Prices paid for goods fell by 0.8% in May, the largest drop in pricing since October 2023. Services prices were unchanged when compared with the prior month.
The lower wholesale prices come after yesterday’s release of the Consumer Price Index (CPI) showed prices were unchanged in May, showing that the public may be seeing more relief from price pressures. A slowdown in inflation could also prompt the Federal Reserve to move interest rates lower.
-Terry Lane
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