More Good Inflation News, Prices Drop

File - A food shopper pushes a cart of groceries at a supermarket in Bellflower, Calif., on Monday, Feb. 13, 2023. Over the past 12 months, gas prices have dropped, grocery costs have risen more slowly and used cars have become less expensive.(AP Photo/Allison Dinner, File)

A measure of wholesale prices unexpectedly decreased in May, adding another piece of evidence that inflation is pulling back.

The producer price index, a gauge of prices that producers get for their goods and services in the open market, declined 0.2% for the month, the Labor Department’s Bureau of Labor Statistics reported Thursday.

That reversed a 0.5% increase in April and compared to the Dow Jones estimate for a 0.1% increase.

Excluding food, energy and trade services, PPI was unchanged, compared to expectations for a 0.3% increase.

The release comes a day after the BLS reported that the consumer price index, a widely watched gauge of inflation that measures what consumers actually pay for goods and services, was unchanged on the month.

Wall Street reacted positively.

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