In May, price increases at the producer level posted their smallest increase in three months, surprising economists and other analysts who had anticipated a significantly higher figure.
Seasonally adjusted, the Producer Price Index (PPI) for finished goods rose just two-tenths of a percentage point, the U.S. Labor Department reported on June 13. Economists generally expected May's increase to be four-tenths of a percent.
"Most of the deceleration in the finished goods index can be traced to prices for energy goods, which slowed to a 0.4% increase in May after advancing 4% in April," the department said.
However, following two months of one-tenth-percent increases, the core PPI, which does not count price changes for food and fuel, rose three-tenths of a percentage point in May, more than the two-tenths that had been anticipated.