CNN
—
US wholesale inflation rose slightly in May.
The latest Producer Price Index, a closely watched measurement of wholesale inflation, showed that prices paid to producers rose 0.1% in May, lifting the annual rate to 2.6%, according to Bureau of Labor Statistics data released Thursday.
The upswing marked a turnabout from a 0.2% drop in April, which was driven largely by wholesalers and retailers’ margins being squeezed because of higher tariffs.
Economists were expecting that prices would rise 0.2% from April and 2.6% for the 12 months ended in May.
PPI serves as a potential bellwether for retail-level inflation in the months ahead.
On Wednesday, the latest Consumer Price Index data showed that overall inflation rose less than expected for goods and services commonly purchased by Americans.
Economists warn, however, that President Donald Trump’s sweeping tariffs are expected to eventually result in some price increases for consumers.
This story is developing and will be updated.