Wholesale prices were flat in May

Wholesale prices were flat in May

Wholesale prices were flat in May

Excluding the more volatile categories food, fuel and trade, PPI slipped 0.1 per cent for the month, and the 12-month rate was up 2.1 per cent, unchanged from last month. Rising energy prices along with a bump in other commodities had been pushing producer prices up, but the trend weakened last month.

Still, despite inflation missing their targets, a rate hike at the conclusion of the Federal Reserve Open Market Committee's (FOMC) two-day policy meeting on Wednesday is all but certain.

Year-over-year, the producer price index (PPI) rose 2.4% in May, compared to expectations for a gain of 2.3% and following a 2.5% increase in the preceding month.

In this Thursday, March 24, 2016, photo, Chase Ming reaches for a bottle of vodka to seal the cap before receiving a label at the Cathead Distillery in Jackson, Miss.

Lower costs of gasoline and other fuels kept wholesale US inflation in check in May, but upward pressure on prices persisted in many areas of an economy whose expansion is the third longest in modern times. Furthermore, when producers pay more for goods, they are more likely to pass price increases on to the consumer, so PPI could be considered a leading indicator of inflation.

Many analysts expect the Fed to raise rates a total of three times this year. As a result, the cost of goods fell 0.5 percent, reversing April's 0.5 percent increase. Energy prices declined 3.0% and food down 0.2%.

"Over the past year, both core goods and services prices have accelerated, with the year-on-year rates now at 2.2% and 2.1% respectively; both were near zero in late 2015".

Energy prices continued to see sharp declines, with gasoline prices plunging 11.2 per cent, the largest drop since February 2016, while jet fuel costs fell 11 per cent, the biggest decline since January of a year ago.

Food costs fell 0.2 percent as the prices of fresh fruits and melons recorded their biggest drop since June 2010.

Recommended News

  • Mario & Luigi Superstar Saga Remake Coming to 3DS

    Mario & Luigi Superstar Saga Remake Coming to 3DS

    Nintendo describes it as: "Recruit characters to grow your own Minion army as you fight to locate your missing leader". Bowser's Minions , the new addition to the game, will include a new mode that the original 2003 game didn't have.

    How To Watch Jeff Sessions Testify On The Hill From Your Desk

    But Sessions recused himself from the Russian Federation investigation in March after the revelations of the two Kislyak meetings. Trump, anxious by the President's phone calls and questions. "I was taken aback by these explosive allegations".

    London attack: Police arrest 19-year-old man

    They were able to kill eight people and injure approximately 48 others before being shot dead by police. Haydon also theorized the attackers may have seen the belts as a protection from being shot by police.
  • Accelerating Growth & Analysts Upside Potential For Cabot Oil & Gas Corporation (NYSE:COG)

    Accelerating Growth & Analysts Upside Potential For Cabot Oil & Gas Corporation (NYSE:COG)

    Crestwood Advisors Group LLC acquired a new position in Cabot Oil & Gas Co. during the first quarter valued at about $167,000. If you are reading this piece on another site, it was copied illegally and reposted in violation of worldwide copyright law.

    Suspected North Korea drone took photos of USA missile-defense site

    The drone, according to the report, was found last week just days after North Korea test-fired a salvo of anti-ship missiles. Separately, former National Basketball Association (NBA) star Dennis Rodman is expected to arrive in North Korea on Tuesday.

    Sessions to face sharp questions on Trump, Russia, Comey

    Here are five facts about Attorney General Jeff Sessions , who testified Tuesday before the Senate Intelligence Committee . Sessions raised his voice to the Democratic senator pressing him for an answer, insisting there were no such reasons.
  • Uber board member makes sexist joke in meeting about sexism

    Uber board member makes sexist joke in meeting about sexism

    Bonderman joked that the data actually shows that more women leads to more yapping. I also want to apologize to all Uber employees who were offended by the remark".

    Sessions Confirms Some Facts About Comey's Private Trump Chat

    Prior to the speech, I attended a reception with my staff that included at least two dozen people and President Trump. Sessions raised his voice to the Democratic senator pressing him for an answer, insisting there were no such reasons.
    Trump tells senators House health bill 'mean'

    Trump tells senators House health bill 'mean'

    Asked directly on Monday if a bill would be presented to senators on Tuesday, Senate Majority Whip John Cornyn said simply, "No". Senate Republicans have their fair share of critics who are frustrated that they are considering the bill behind closed doors.
  • Justice Department's Rosenstein assures Congress of special counsel's independence in Russian Federation probe

    Ruddy however, doubled down on the idea , telling NBC in a statement Spicer's statement was "bizarre" and doesn't deny his claim. Christopher Ruddy, who is the CEO of conservative Newsmax Media, told PBS on Monday night that Trump was "weighing that option".

    Delcath Systems, Inc. (NASDAQ:DCTH) Shares Slipping Lower

    In terms of Buy, Sell or Hold recommendations, Delcath Systems Inc (NASDAQ: DCTH ) has analysts' mean recommendation of 2. The overall volume in the last trading session was 222.13 million shares. 113,313,674 shares of the company traded hands.
    Attorney General Jeff Sessions to testify publicly before Senate

    Attorney General Jeff Sessions to testify publicly before Senate

    But the revelations forced Sessions to recuse himself from the Russian Federation investigation in March. Sessions then spoke individually to some of the ambassadors , including Kislyak, the official said.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.