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US PPI Fall Unexpectedly in May

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U.S. producer prices unexpectedly fell in May as costs declined broadly, indicating inflation pressures remained benign.

The Labor Department said on Friday its producer price index for final demand slipped 0.2 percent, braking sharply from April’s 0.6 percent increase, which was the largest gain in 1-1/2 years.

Economists polled by Reuters had forecast producer prices rising 0.1 percent.

The department revamped its PPI series at the start of the year to include services and construction. The series is volatile because of big swings in prices received for trade services, making it hard to get a good read on inflation.

Wholesale prices had hinted at some pick-up in inflation pressures in recent months. But Friday’s report suggested that inflation at the factory gate remained muted.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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