Producer Price Index: Wholesale Inflation Cools in May

Wholesale inflation unexpectedly cooled last month. Here is the latest news release from the Bureau of Labor Statistics.

The producer price index for final demand decreased 0.2% month-over-month (s.a.), less than the expected 0.1% growth. On a non-seasonally adjusted annual basis, headline PPI decelerated from 2.3% in April to 2.2% in May, coming in below the expected 2.5% growth.

Core PPI (excluding food and energy) for final demand was flat last month, less than the expected 0.3% growth. On a non-seasonally adjusted annual basis, core PPI decelerated from 2.5% year-over-year in April to 2.3% in May, coming in below the expected 2.4% growth.

Below is a chart of the historical series with a callout to the most recent 12 months.

PPI - producer price index year over year