US wholesale prices up 0.1 per cent in May

WASHINGTON—U.S. wholesale prices rose just 0.1 per cent in May month, another sign that inflation remains under control.

The Labor Department says the increase last month in its producer price index, which measures inflation pressures before they reach consumers, was half April’s 0.2 per cent increase.

The entire gain in May came from a 0.3 per cent increase in the wholesale price of services. Goods prices fell 0.2 per cent.

Over the past year, producer prices have risen 1.8 per cent. Excluding the volatile food and energy categories, wholesale prices rose 0.2 per cent in May from April and 2.3 per cent from May 2018.

Inflation remains tame, enabling the Federal Reserve to stop raising interest rates after four hikes in 2018. Investors increasingly expect the Fed to cut rates amid signs the U.S. and world economies are decelerating.