US PPI: A pause in May - Wells Fargo

In the US, the Producer Price Index (PPI) remained unchanged in May. According to analysts from Wells Fargo, it matched expectations and came off a sizeable, broad-based gains in April.

Key Quotes: 

“Goods prices fully retraced April’s gain, dropping 0.5 percent on the month as energy prices fell 3.0 percent and wholesale food prices declined 0.2 percent.”

“Our preferred measure of core PPI (excluding energy, food and trade services) dipped 0.1 percent on the month, but remains at its fastest annual pace on record. Pipeline price pressures also showed some signs of moderation last month as processed goods edged up just 0.1 percent and unprocessed goods fell 3.0 percent."

“The PPI for personal consumption remained flat, supporting expectations for a modest May consumer inflation performance.”