The Labor
Department announced on Thursday the U.S. producer-price index (PPI) fell 0.2
per cent m-o-m in May, following an unrevised
0.5 per cent m-o-m jump in April. This represented the steepest
monthly decrease in PPI since October 2023 (-0.3 per cent m-o-m).
For the 12
months through May, the PPI surged by 2.2 per cent, slightly decelerating from an upwardly revised 2.3
per cent soar (from +2.2 per cent) in the previous month. This marked the first
slowdown in annual producer price inflation in four months.
Economists had expected
the headline PPI would advance 0.1 per cent m-o-m and 2.5 per cent over the
past 12 months.
According to
the report, the May decline in the headline index was due to a 0.8-per cent m-o-m decrease
in the index for final demand goods, which, in turn, was led by a 4.8 per cent m-o-m
plunge in the index for final demand energy. Meanwhile, the index for final
demand services was unchanged. m-o-m.
Excluding
volatile prices for food and energy, the PPI was unchanged m-o-m but climbed
2.3 per cent over 12 months. Economists had forecast gains of 0.3 per cent
m-o-m and 2.4 per cent y-o-y for May. In April, the core PPI posted a 0.5 per
cent m-o-m increase
and a 2.4 per cent y-o-y rise.