May Producer Price Index: -0.3% vs. -0.1% consensus and +0.2% in April (unchanged).
On a Y/Y basis, PPI advanced 1.1%, trailing the 1.5% consensus, compared with the 2.3% increase logged in the prior month.
A separate measure of wholesale prices that strips out volatile food and energy costs and trade margins was flat last month, the government said.
The increase in these so-called core prices over the past year decelerated to 2.8% from 3.3%, marking the smallest increase since February 2021.
The weak wholesale inflation report likely adds to the case inside the Federal Reserve to “skip” an increase in a key U.S. interest rate when senior officials conclude a pivotal two-day meeting on Wednesday.
The rate of inflation is slowing and waning wholesale prices suggest more progress is likely over the summer.