Economic Trends

U.S. Producer Prices See Modest Rise in May

U.S. producer prices inched higher in May, reflecting a modest rebound in wholesale costs led by services and goods after recent declines.

June 12, 2025

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U.S. producer prices edged up in May after a slight decline in April, according to the latest government data.

The Bureau of Labor Statistics released its monthly Producer Price Index report on June 12, showing that final demand increased 0.1% month-to-month during May 2025, following a 0.2% decline in April and a 0.1% decrease in March.

On an annual basis, May’s PPI increased 2.6%, up from 2.4% in April but down from 2.7% in March.

Economists had forecasted a 0.2% monthly gain for May and a 2.6% annual increase.

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May’s increase was impacted predominantly by prices for final demand services, which increased 0.1% month-over-month, following a 0.1% decline in April. Meanwhile, the index for final demand goods rose 0.2% during May.

U.S. Producer Price Index Month-Over-Month


source: tradingeconomics.com

The PPI tracks average price shifts at the wholesale level before they reach consumers.

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Core PPI— which excludes volatile food and energy categories — increased 0.1% during May month-over-month, following its first decline in April (-0.1%) since April 2020. Core PPI for the 12 months that ended in May rose 2.7%.

U.S. Producer Price Index Year-Over-Year


source: tradingeconomics.com

The Bureau of Labor Statistics released its monthly Consumer Price Index summary on June 11, which showed a similar increase in May. The month’s all-items index increased 0.1% in May month-over-month, following a 0.2% gain in April and a 0.1% decline in March. The CPI all-items index increased 2.4% for the 12 months that ended in May.

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