National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
May PPI Rises Less Than Expected, Supporting Case for Fed Caution
Producer prices rose 0.1% in May, falling short of the 0.3% forecast and rebounding from April’s revised 0.2% decline (initially -0.5%), according to the Bureau of Labor Statistics. On a year-over-year basis, the Producer Price Index (PPI) increased 2.6%, matching expectations and accelerating slightly from April’s revised 2.5% gain.
Core PPI, which excludes food and energy, also rose 0.1% for the month—below the 0.3% consensus and following a 0.2% decline in April (revised from -0.4%). Annually, core PPI climbed 3.0%, slightly softer than the expected 3.1% and down from a revised 3.2% in the prior month.
The data, released a day after cooler-than-expected consumer inflation figures, reflects modest underlying price pressures and reinforces expectations that the Federal Reserve will maintain a cautious stance on rate cuts. Wholesale price trends in the coming months will play a key role in shaping the Fed’s next policy moves.
- ◦Economy
