US producer prices edged up 0.1% month-over-month in May 2025, following an upwardly revised 0.2% decline in April and compared with a 0.2% increase expected. Goods prices rose 0.2%, with tobacco costs rising 0.9%. Prices for gasoline, processed poultry, roasted coffee, household natural gas, and oilseeds also rose. In contrast, jet fuel prices fell 8.2%.

In addition, service costs edged up 0.1%, with the margin for wholesale sales of machinery and vehicles jumping 2.9%. Costs for traveler accommodation services; retail sales of clothing, footwear, and accessories; retail sales of alcohol; and publishing of systems software also moved up. In contrast, airline passenger service prices fell 1.1%.

Meanwhile, core producer prices rose 0.1%, well below the 0.3% increase expected. Year-over-year, producer prices increased 2.6%, in line with expectations, following an upwardly revised 2.5% increase in April. The annual core rate slowed to 3% from 3.2% while forecasts pointed to 3.1%.(alg)

Source: Trading Economics