US producer prices rise to 2.6% in May

The annual inflation rate of producer prices in the US rose in May, signaling early signs of the impact of higher tariffs on prices, according to data released by the US Department of Labor.

The Producer Price Index (PPI) climbed year-on-year (YoY) to 2.6% in May, beating expectations for remaining steady at last month's level of 2.5%.

Core producer inflation — which excludes volatile components such as food, energy, and trade services — witnessed a modest slump to 2.7% YoY.

On a monthly basis, the PPI increased by 0.1%, following contractions of 0.2% in April and 0.1% in March.

The data also showed a rise in gasoline and natural gas prices, while jet fuel prices declined by 8.2%.

In the services sector, prices inched up by 0.1% month-on-month in May, after falling by 0.4% in April.

This data came after the Bureau of Labor Statistics reported today, June 12, that the annual Consumer Price Index (CPI) accelerated to 2.4% in May, slightly below forecasts for an uptick to 2.5%, from 2.3% in April.