Wholesale prices blip up 0.1% in May
WASHINGTON (AP) — U.S. wholesale prices rose just 0.1% in May month, another sign that inflation remains under control.
The Labor Department says the increase last month in its producer price index, which measures inflation pressures before they reach consumers, was half April’s 0.2% increase.
The entire gain in May came from a 0.3% increase in the wholesale price of services. Goods prices fell 0.2%.
Over the past year, producer prices have risen 1.8%. Excluding the volatile food and energy categories, wholesale prices rose 0.2% in May from April and 2.3% from May 2018.
Inflation remains tame, enabling the Federal Reserve to stop raising interest rates after four hikes in 2018. Investors increasingly expect the Fed to cut rates amid signs the U.S. and world economies are decelerating.