U.S. Producer Prices Unexpectedly Drop 0.2% in May, Largest Decline Since October 2023

Jun 13, 2024, 12:39 PM

The U.S. Producer Price Index (PPI) for May showed an unexpected decline of 0.2%, the largest drop since October 2023. This contrasts with economists' expectations of a 0.1% increase, as surveyed by Dow Jones. The decline was driven by a 0.8% decrease in goods, while services showed no change. On an annual basis, the PPI rose 2.2%, slightly below the expected 2.5% and consistent with the previous month's increase. The core PPI annual rate in May was 2.3%. The unexpected drop in producer prices adds to evidence that inflationary pressures are moderating.