The producer price index (PPI)—a measure of prices paid by businesses for goods and services—rose less than expected in May, signaling that tariff-related inflation effects have yet to materialize.
According to the Bureau of Labor Statistics, the PPI increased by 0.1 percent last month, following an upwardly revised 0.2 percent decline in the previous month. Goods inflation jumped 0.2 percent, while services rose 0.1 percent.
Core producer prices, which strip out the volatile energy and food components, also rose 0.1 percent in May.
Both readings came in below economists’ expectations.
On a 12-month basis, PPI inflation inched higher, to 2.6 percent from 2.5 percent in April. Core PPI inflation slowed to a lower-than-expected 3 percent from 3.2 percent….