WASHINGTON (dpa-AFX) - Producer prices in the U.S. showed a modest increase in the month of May, according to a report released by the Labor Department on Tuesday.
The Labor Department said its producer price index for final demand inched up by 0.2 percent in May after rising by 0.2 percent in April. The uptick in prices matched economist estimates.
The slight increase in producer prices came as higher prices for services were partly offset by a sharp pullback in energy prices.
The report said energy prices tumbled by 1.0 percent in May after surging up by 1.8 percent in April, with gasoline prices leading the way lower.
Excluding food and energy prices, core producer prices rose by 0.2 percent in May after edging up by 0.1 percent in April. The increase in core prices also met expectations.
Core prices edged higher as prices for services climbed by 0.3 percent in May following a 0.1 percent uptick in the previous month.
While prices for trade services fell by 0.5 percent, prices for transportation and warehousing and other services increased by 0.7 percent and 0.5 percent, respectively.
The report also said the annual rate of growth in producer prices slowed to 1.8 percent in May from 2.2 percent in April, coming in below estimates for an increase of 2.0 percent.
The annual rate of core producer price growth also dipped to 2.3 percent in May from 2.4 percent in April, matching expectations.
On Wednesday, the Labor Department is scheduled to release its more closely watched report on consumer price inflation in May.
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