June 12 (UPI) — Wholesale U.S. inflation measured by the PPI inched up 0.1% in May, according to a Thursday report from the Bureau of Labor Statistics.
It shows no inflation surge yet from tariffs and was lower than Wall Street economists forecast. Both May PPI and core PPI excluding food and energy rose 0.1% in May.
The BLS said the May PPI increase was “led by prices for final demand services, which advanced 0.1%.”
“The Producer Price Index for final demand advanced 0.1% in May, seasonally adjusted,” the BLS said in a statement. “Final demand prices declined 0.2% in April and 0.1% in March. On an unadjusted basis, the index for final demand rose 2.6% for the 12 months ended in May.”
Core annual PPI was 2.7%.
Increases in PPI services costs drove the small May increase.
Both May consumer prices and wholesale prices showed lower than expected inflation. The annual consumer inflation rate in May was 2.4% before seasonal adjustment.
Economists and the Federal Reserve both anticipate that trade wars will trigger some inflation, but for now the pressure seems to have eased.
It will still take a couple more months of positive inflation data for the Fed to consider resuming interest rate cuts because the full impact of tariffs on both the economy and job market isn’tt yet clear.
