MNI DATA IMPACT: US May PPI As-Expected +0.1%, Energy Down>

--Core PPI +0.2% As Expected; Also Ex. Trade Services +0.4%

By Kevin Kastner and Harrison Clarke

     WASHINGTON (MNI) - The May PPI data released Tuesday were right on 

expectations, lowering the year/year headline rate. Overall PPI rose by 

0.1%, as expected from both the MNI and Bloomberg surveys, while core 

prices rose 0.2%, also as-expected. 

     Here are some of the key takeaways from the data released Tuesday: 

     - May PPI was up 0.1% (+0.085% unrounded) month/month overall as 

declines in energy, food, and trade services were offset by an increase 

in the core categories.

     - The year/year rate for overall PPI fell sharply to +1.8% from 

+2.2% in April, while the year/year rate for core prices declined to 

+2.3% from +2.4%. The measure also excluding trade prices was up 0.4% 

month/month and up 2.3% year/year, slightly ahead of the 2.2% year/year 

gain in April. 

     - Core PPI was +0.171% unrounded, on the low side of +0.2%, with 

the major components generally mixed. Computer prices and passenger car 

prices declines, but light truck prices rose in the month. Services 

prices, particularly medical prices, rose solidly.

     - Energy prices fell by 1.0% in May after a 1.8% gain in April, 

with gasoline prices down 1.7%. PPI excluding only energy posted a 0.2% 

gain, while food prices were down 0.3%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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