In May, U.S. producer prices increased less than anticipated, as service costs such as airfares declined. The producer price index for final demand rose by 0.1% last month following a revised 0.2% drop in April, according to the Bureau of Labor Statistics. Economists had predicted a 0.2% increase after a previously reported 0.5% decline in April. Over the 12 months through May, the PPI increased by 2.6%, up from 2.5% in April. Consumer prices also rose marginally in May, constrained by cheaper gasoline and airline fares. However, economists anticipate inflation will rise in the second half of the year due to tariff-related price increases affecting goods. The Federal Reserve is expected to maintain its benchmark overnight interest rate between 4.25% and 4.50% next Wednesday, with monetary policy easing anticipated to resume in September.
— new from Reuters
