US producer prices increased 0.1% in May, less than forecast, as lower costs for services like air fares restrained growth. This follows a revised 0.2% decline in April.
Economists had predicted a 0.2% rise after the previously reported 0.5% drop in April. Over the past year, producer prices rose 2.6%, up from 2.5% in April.
The Federal Reserve is expected to keep interest rates steady next week and resume monetary policy easing in September. Consumer prices are seen increasing marginally in May, driven by cheaper gasoline and airline fares. However, economists expect inflation to rise in the second half of the year due to tariffs-related price hikes filtering into goods.
Source: https://www.reuters.com/world/us/us-producer-prices-rebound-less-than-expected-may-2025-06-12