US producer prices climb 0.5% in May

US producer prices climb 0.5% in May

Mubasher: The seasonally adjusted US producer price index (PPI) for final demand increased by 0.5% in May from the previous, data released on Wednesday showed.

This marks the largest annual increase since 1.1% seen in May 2015, while the increase is mainly boosted by a 9.8% rise in gasoline prices.

In addition, this comes higher than Reuters analysts’ forecast of 0.3% for May.

Meanwhile, the unadjusted final demand index increased 3.1% over the 12 months ended May, registering the largest advance since January 2012, according to the US Bureau of Labor Statistics data.

This comes also higher than expectations of 2.8% for the 12 month-period.

Final demand services index went up 0.3% in the fifth month of the year, registering the fifth consecutive rise, driven by a 0.9% gain in the margins for final demand trade services.

Similarly, the index for final demand goods excluding foods, energy and trade services inched up 0.1% in May, while it climbed 2.6% in the 12 month ended May.

By 12:57 pm GMT, the US dollar index shed 0.12% to 93.7030.