U.S. producer prices fell in May, with producer price index decreasing 0.3% and the PPI increasing 1.1% year-on-year, the smallest gain since December 2020.
The decrease in producer prices was driven by declines in energy and food prices.
The PPI excluding food and energy was unchanged.
The Federal Reserve kept interest rates unchanged, signaling that borrowing costs will likely rise by another half of a percentage point by the end of this year due to the economy's resilience.
Inflation is subsiding as supply chain bottlenecks disappear and demand for goods slows in response to higher borrowing costs.
Inflation data released by the US Bureau of Labor Statistics (BLS) shows that the Consumer Price Index (CPI) increased by 0.4% in May 2022, while the Producer Price Index (PPI) increased by 0.6%.
The core PCE price index, which excludes volatile food and energy prices, rose 0.3% in May and 4.7% year-on-year.
Some economists are skeptical about the impact of easing input costs on consumer prices, as consumers have become accustomed to higher prices.
Fed officials raised their core PCE inflation projection for this year to 3.9% from 3.6% in March, but inflation pressures remain high.
The data will be published at the end of the month.
The PPI excluding food and energy was unchanged.
The Federal Reserve kept interest rates unchanged, signaling that borrowing costs will likely rise by another half of a percentage point by the end of this year due to the economy's resilience.
Inflation is subsiding as supply chain bottlenecks disappear and demand for goods slows in response to higher borrowing costs.
Inflation data released by the US Bureau of Labor Statistics (BLS) shows that the Consumer Price Index (CPI) increased by 0.4% in May 2022, while the Producer Price Index (PPI) increased by 0.6%.
The core PCE price index, which excludes volatile food and energy prices, rose 0.3% in May and 4.7% year-on-year.
Some economists are skeptical about the impact of easing input costs on consumer prices, as consumers have become accustomed to higher prices.
Fed officials raised their core PCE inflation projection for this year to 3.9% from 3.6% in March, but inflation pressures remain high.
The data will be published at the end of the month.