12.06.202512:34:58UTC+00US Producer Prices Lower than Forecasts

In May 2025, U.S. producer prices experienced a modest uptick of 0.1% from the previous month. This came after an amended decline of 0.2% in April and contrasted with predictions of a 0.2% increase. Specifically, prices for goods rose by 0.2%, driven partly by a 0.9% increase in tobacco costs. There were also price hikes for gasoline, processed poultry, roasted coffee, residential natural gas, and oilseeds. However, the price for jet fuel saw a significant decrease of 8.2%. On the services front, costs saw a slight rise of 0.1%, highlighted by a 2.9% surge in margins for machinery and vehicle wholesaling. Additionally, the costs associated with traveler accommodation services; retailing of apparel, footwear, and accessories; alcohol retailing; and system software publishing also increased. Conversely, prices for airline passenger services declined by 1.1%. Core producer prices rose modestly by 0.1%, falling short of the anticipated 0.3% increase. Annually, producer prices rose by 2.6%, aligning with market expectations, following a revised 2.5% increase in April. The core annual rate slowed to 3% from 3.2%, which was below the 3.1% forecast.