Producer prices ticked slightly higher in May, matching expectations on a monthly basis and coming in just shy of views year-on-year while core prices accelerated.
The producer-price index for final demand rose 0.1% last month, slower than April’s 0.2% pace but in line with the consensus on Econoday. Annually, headline prices increased 1.8%, missing the 2% print expected and slower than 2.2% a month earlier.
Excluding food, energy and trade prices, PPI rose 0.4% in May, matching April’s pace and coming in faster than the 0.2% print analysts expected. On a yearly basis, the core index rose 2.3% from 2.2% in April.
Final demand goods contracted 0.2% in May from growth of 0.3% in April, and the figure excluding food and energy was flat, the same as the month earlier result. Services PPI rose 0.3% from a 0.1% advance a month earlier.
“The headline was constrained by falling energy prices while the core increase was all in the services component,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “Overall core PPI looks unthreatening but we are watching the core services numbers closely.”
Action Economics said the price weakness came as a result of the decline in oil prices that has extended into June amid worries about global trade issues.