U.S. Producer Price Index for May

SOURCE www.breitbart.com
Prices of goods and services in the U.S. rose by less than expected in May, indicating that President Trump's tariffs are not significantly impacting inflation. The producer price index for final demand increased by 0.1%, half of what economists had predicted. Core producer prices rose by 0.1% as well. The index measures prices paid to domestic producers of goods and services, not just wholesale prices.

Key Points

  • Producer price index measures prices paid to domestic producers of goods and services
  • Final demand portion signals sales to end-users like governments, foreign buyers, households, and businesses
  • Index tends to track consumer price index over time, although they can diverge monthly
  • Consumer price index tracks prices paid by households to foreign and domestic businesses

Pros

  • Prices of goods and services rose by less than expected in May
  • Evidence suggests that President Trump's tariffs are not significantly impacting inflation
  • Producer price index for final demand increased by 0.1%, lower than economists' forecast

Cons

  • Core producer prices rose by 0.1%, also lower than expected
  • Inflation could still be impacted by future trade policies