Overall Producer Price Increase Is Less Than Expected

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.

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