Producer inflation in the USA declined in May with the decline in fuel prices.
According to data from the US Department of Labor, the producer price index decreased by 0.3 percent on a monthly basis in May. Thus, monthly PPI decreased in 3 of the last 4 months.
On an annual basis, the PPI increased by 1.1 percent, the lowest increase since 2020. The previous month’s increase was 2.3 percent.
The forecast of economists surveyed by Bloomberg was a 0.1 percent monthly decline and a 1.5 percent annual increase.
Core PPI, which does not include food and energy, remained unchanged on a monthly basis, increasing by 0.2 percent, while the annual increase declined from 3.2 percent to 2.8 percent.
The consumer price index (CPI), announced yesterday in the country, increased by 0.1 percent monthly in May, while the annual increase fell from 4.9 percent to 4 percent, the lowest level since 2021.
The Fed, which has increased interest rates due to high inflation, is expected to take a break from the increases at the meeting tomorrow. Depending on the course of inflation, the bank is expected to continue to increase interest rates for the rest of the year.