Slight Uptick in U.S. Producer Prices Despite Lower Service Costs
In May, U.S. producer prices recorded a slight increase, mainly due to reduced costs in services like air travel. The 0.1% rise in the producer price index followed a previous drop. Expected inflation might rise later in the year as tariff impacts become apparent, with Federal Reserve rate decisions pending.
- Country:
- United States
In a recent report from the U.S. Bureau of Labor Statistics, a moderate increase in producer prices for May was noted, largely attributed to reduced service costs including airfares. The producer price index for final demand registered a 0.1% increase following a revised 0.2% decline in April.
This rise was slightly below economists' forecasts, who anticipated a 0.2% increase. Over the past 12 months, producer prices have increased by 2.6%, up from a 2.5% annual gain in April, indicating a mild upward trend.
Meanwhile, consumer prices showed marginal growth in May, primarily driven by reduced gasoline and airline fares. However, experts predict inflation could escalate in the latter half of the year due to escalating tariffs, as the Federal Reserve maintains a steady interest rate and contemplates policy adjustments in the coming months.
(With inputs from agencies.)
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