PPI June 2024 release with May 2024 Data

The BLS has released the May, 2024 Producer Price Index Report.  (historical releases)

The Producer Price Index for final demand declined 0.2 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.5 percent in April and edged down 0.1 percent in March. (See table A.) On an unadjusted basis, the index for final demand advanced 2.2 percent for the 12 months ended in May.

The May decrease in final demand prices can be attributed to a 0.8-percent decline in the index for final demand goods. Prices for final demand services were unchanged. 

Prices for final demand less foods, energy, and trade services were unchanged in May following a 0.5-percent increase in April. For the 12 months ended in May, the index for final demand less foods, energy, and trade services rose 3.2 percent.

PPI Final Demand...

The 2.4% year to year, is the same as last month, which was the highest since April, 2023. Food continued to edge down. It has not edged down at the consumer level, but fingers crossed.

Certainly some tempering of inflation, but there have been periods of tempering before.

As for the overall report card, there were some areas of concern in the PPI report, with services still holding the line.

Not sure how another monthly decline of -0.2% will take place. Flat maybe, with another +2.2% annual reading.

In any case, we had a -0.2% decline, following last month's +0.5% increase, which happened to be the highest y/y increase since April, 2022, and is matched by this release at +2.2%, as well.

The enthusiasm over inflation's demise, might be a bit premature, imho.