U.S. May PPI report provides further confirmation that inflationary pressures are moderating

On June 13, the U.S. May PPI annual rate of 2.2% was expected to be 2.50%, compared with the previous 2.20%. U.S. May PPI monthly rate -0.2%, expected 0.10%, the previous value of 0.50%. The U.S. PPI unexpectedly fell in May, the largest decline in seven months, providing further evidence that inflationary pressures are moderating. Data released Thursday by the U.S. Bureau of Labor Statistics showed that the PPI, which represents final demand, fell 0.2% from the previous month and rose 2.2% from a year ago. The PPI report comes on the heels of consumer price data for May that also showed a general cooling of the economy. Fed officials have kept the benchmark interest rate at its highest level in more than 20 years since last July. Wednesday's Fed dot plot showed they expect to cut rates only once this year while waiting for further progress on inflation.