US Producer Prices Up 0.1% in May

U.S. producer prices rose by a modest 0.1% in May, falling short of economists’ forecasts and indicating subdued inflationary pressures. The Producer Price Index (PPI) increased 2.6% year-over-year, while core PPI, excluding food and energy, rose 0.1% month-over-month and 3% year-over-year, both slightly underperforming market expectations. Mild inflation readings were also observed in consumer prices, likely prompting the Federal Reserve to maintain a cautious stance on interest rates. Although tariffs have yet to significantly affect prices, economists caution their impact could emerge later in the year as supply chains adapt. The U.S. dollar weakened after the release, reflecting persistent trade uncertainty. Labor market data and rising unemployment claims suggest some softness amid these inflation dynamics.