US producer inflation eases to 1.1% in May

By Ovunc Kutlu

ISTANBUL (AA) - US annual producer inflation eased to 1.1% in May, according to Labor Department data released Wednesday.

The figure marked a significant slowdown from April's annual gain of 2.3%.

The producer price index (PPI), which measures changes in the price of goods and services from a producer perspective, was lower than market estimates of 1.5% annual increase.

On a monthly basis, the PPI declined 0.3% in May, also coming lower than expectations of a 0.1% decrease.

The April figure was a 0.2% increase, compared to the month before.

This also market the third decline in the last four months for the PPI on a monthly basis.

"In May, the decline in the final demand index can be traced to prices for final demand goods, which fell 1.6 percent. The index for final demand services increased 0.2 percent," the Labor Department said in a statement.

Core producer prices, which exclude food, energy and trade, remained unchanged in May, while the April figure was revised to a 0.1% increase, slightly down from a 0.2% gain.

Core PPI in May increased 2.8% on an annual basis, while the figure for April was revised to 3.3%, down from 3.4%.