Producer prices snapped back in May after an April decline, but the rebound fell short of sparking inflation concerns, suggesting tariffs and supply frictions have yet to bleed broadly into the economy.
The Producer Price Index rose 2.6% on a year-over-year basis, up from April’s upwardly revised 2.5%, according to Thursday’s report from the Bureau of Labor Statistics.
On a monthly basis, the PPI advanced 0.1%, reversing April’s upwardly revised 0.2% decline, and below the 0.2% expected.
Core PPI, which strips out food and energy prices and is a key indicator of underlying inflation pressures, eased to 3% annually …