Core Producer Prices Rise 0.3% in May

The U.S. economy is not quite out of the inflationary woods just yet as May?s producer price index was released today by the Labor Department. The PPI showed an overall gain of just 0.2% on moderating energy prices. But the core PPI, which excludes energy and food costs, showed a slightly larger than expected gain of 0.3%, according to a story by Dow Jones? MarketWatch.

Economists surveyed by MarketWatch had anticipated a reversal in the numbers with overall PPI expected to rise 0.3% and core PPI to increase 0.2%.

The new report did little to shed light on the Fed?s interest rate intentions for the end of the month. Generally, it is expected that the Fed will raise interest rates again at the end of June to combat inflation, but that the rate-raising cycle may be near its end. Consumer price reports will be released tomorrow, hopefully giving a clearer picture of inflation.

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