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

  • 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".
    E3 2017: Razer Unveils Thresher Ultimate Headset for PS4 and Xbox One

    E3 2017: Razer Unveils Thresher Ultimate Headset for PS4 and Xbox One

    Both versions are priced at $249.99/€279.99 and will be available on Razerzone.com this month and worldwide in July. Here's a look at the Xbox version of the Razer Thresher Ultimate, complete with docking station.
    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.
  • 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".
    Greenpeace in Spain protests Trump climate decision

    Greenpeace in Spain protests Trump climate decision

    The agreement, a partially legally-binding commitment, proposed to free the world of fossil fuels by the end of the century. Withdrawing from the Paris accord effectively cedes this leadership to other countries.
    DUP hopeful of deal with Conservatives sooner rather than later, says Foster

    DUP hopeful of deal with Conservatives sooner rather than later, says Foster

    A Downing Street source said the talks had been "constructive" but refused to put a timescale on when they would conclude. May is under pressure to take on a more cross-party approach to the negotiations surrounding Brexit.
  • Indiana mother who killed 2 children faces new murder charge

    Pasztor told police she killed Macomber to "send a message to the "cartels" not to mess with her", according to court documents. A prosecutor has filed a new murder charge against an IN woman who pleaded guilty to fatally smothering her two children.

    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.

    Georgia inmates on the run after killing 2 correctional officers

    Dubose was imprisoned after he was found guilty of credit card fraud, armed robbery, theft and aggravated assault. It was unclear what they were in custody for. "We're trying to get this bus unloaded", Massee said.
  • Donald Trump invited to testify over James Comey, Russian meddling

    Donald Trump invited to testify over James Comey, Russian meddling

    He arrived in the job in February eager to launch ambitious efforts to combat violent crime and deport undocumented immigrants. Spicer told reporters Monday that it "depends on the scope of the questions" and said it was "premature" to say.

    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.
    E3 2017: PlayStation VR Titles Announced

    E3 2017: PlayStation VR Titles Announced

    The company says that Skyrim VR "reimagines the complete epic fantasy with an unparalleled sense of scale, depth and immersion". What should I expect in terms of gameplay? The first-person shooter game Superhot VR will be launched this summer.

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.