US May PPI, 0.1% rise…Expectations fall short, easing inflation expectations

US PPI Index Below Expectations (Source: US BLS)

The May Producer Price Index (PPI) of the United States fell short of market expectations, sending signals that inflation pressure is gradually easing. The US Department of Labor announced on the 11th (local time) that the May PPI rose by 0.1% compared to the previous month. This result is below the market forecast of a 0.2% increase.

The PPI is an indicator that precedes the Consumer Price Index (CPI) and reflects the production costs of companies, influencing future consumer price trends. This figure is expected to act as a factor that could support expectations for the Federal Reserve's monetary policy easing.