Inflation fell to 1.1% in May in producer price index
by Zachary Halaschak, Economics Reporter |
June 14, 2023 08:33 AM
Inflation fell to a 1.1% annual rate in May, as measured by the producer price index.
On a month-to-month basis, the wholesale price index declined by 0.3%, the Bureau of Economic Analysis reported Wednesday morning — some more encouraging inflation news a day after another key inflation report came back better than expected.
The decrease is an indication that inflationary pressures are abating in the face of the Federal Reserve’s campaign to slow economywide spending by hiking interest rates.
While the headline PPI numbers show wholesale inflation running at a healthy level, core inflation, which strips out movement in volatile food, energy, and transportation, is still hotter than is healthy. It clocked in at a 2.8% annual rate in May.
Wednesday’s PPI report comes a day after the consumer price index, which is even more closely watched, was released. The CPI fell to a 4% annual rate, a downward revision from the prior report. The annual CPI inflation rate has been trending down since peaking last June and is now running at the lowest level since March 2021, right around when the country’s inflationary woes first began.
That 4% inflation is still about double what the Fed sees as healthy.
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https://www.washingtonexaminer.com/policy/economy/inflation-fell-to-1-1-in-may-in-producer-price-index
