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Friday, October 7, 2022
HomeNewsEconomyPPI: Wholesale Inflation Rises, Remains Weak

PPI: Wholesale Inflation Rises, Remains Weak


The Producer Price Index (PPI) reported by the Labor Department Bureau of Labor Statistics.

The Labor Department said on Wednesday its producer price index (PPI) for final demand increased 0.4% last month after rising 0.2% in April. In the 12 months through May, the PPI fell 0.1% after being unchanged in April.

The median economists forecast outlined in a poll by Reuters expected the PPI to increase 0.3% last month and falling 0.1% from a year ago.

While the report marks the second straight month of gains, underlaying inflation remains weak. A relatively strong U.S. dollar (USDUSD) and weak oil prices between June 2014 and December 2015 weighed down and kept inflation below the Federal Reserve’s 2% target for hiking interest rates. However, the dollar has fallen 1.5% against the currencies of the United States’ main trading partners this year and oil prices have increased to nearly $50 per barrel.

Yet, underlying inflation remains benign.

Last month, energy prices jumped 2.8% after increasing 0.2% in April. Energy prices accounted for two-thirds of the 0.7% rise in the PPI.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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