MW: U.S. producer prices fall 0.3% in May; core up 0.2
By Ruth Mantell
WASHINGTON (MarketWatch) -- U.S. wholesale prices fell a seasonally adjusted 0.3% in May - the largest decline since February -- as prices for energy and food goods fell, the Labor Department reported Wednesday. The core rate in May, which excludes volatile energy and food prices, rose 0.2%, the seventh monthly gain in a row. Economists surveyed by MarketWatch had expected overall producer prices to fall 0.6%, and for the core to gain 0.1%. In May gasoline prices fell 7%, while the index for fresh and dry vegetables fell 18%. Over 12 months, overall producer prices are up 5.3%. The core is up 1.3% over 12 months, the largest gain since September. Core producer prices for intermediate goods, viewed as a leading indicator of inflation, rose 0.3% in May. Over 12 months, core intermediate goods prices are up 6.1%, the largest gain since October 2008. In April, overall PPI fell 0.1%, and the core rose 0.2%.
