Overview

• The Producer Price Index for final demand climbed 0.1% in May, bringing the 12-month increase to 2.6%.
• Core PPI excluding food and energy also rose 0.1% for the month.
• Final demand services led the modest advance even as anticipated tariffs failed to trigger widespread price hikes.
• Costs for machinery and vehicle wholesaling jumped 2.9%, and appliance and computer equipment prices also increased.
• Federal Reserve officials indicated they need additional confirming inflation readings before considering interest rate cuts.