U.S. Core PPI Falls Short of Expectations Amid Moderate Cost Increases

According to BlockBeats, a report released by the U.S. Bureau of Labor Statistics on Thursday indicates that the core Producer Price Index (PPI) for May fell short of expectations due to moderate increases in the costs of goods and services. Economists note that while the impact of high tariffs on American consumers remains limited, price pressures may intensify in the latter half of the year as businesses strive to protect their profit margins. The PPI data reveals that after a decline in April, profit margins for wholesalers and retailers expanded in May, particularly in the automotive and machinery wholesale sectors. This year, profit margins have fluctuated monthly, highlighting the uncertainty of trade policy impacts on prices and demand. Analysts are paying close attention to the PPI report, as some of its components are used to calculate the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures (PCE) data. In May, areas showing weak performance included airline ticket prices, portfolio management fees, and medical costs, which remained moderate. The PCE report is expected to be released later this month.