WASHINGTON — The May producer price data largely reflect rebounds from April dips in the headline and are mostly benign underneath.
May PPI posted a 0.5% rise, offsetting the 0.7% drop in April, and core PPI was up 0.1% (0.0540% unrounded). These produced year-over-year gains of 1.7% overall and 1.7% core, modest paces.
Food was up 0.6% as eggs, fruits and cheese jumped. This offset the 0.7% drop in April. Egg prices jumped 41.6%, the largest monthly gain on record (prior was a 39.2% surge in April 2000), as avian flu took out some Mexican supply.
Energy was up 1.3% on broad gains, with gasoline showing a 1.5% increase and accounting for 40% of the gain. Energy gains also offset the prior two months of lower prices. Through mid-June gas prices appear flatter, so they should be less of a swing factor ahead.
In core, light trucks at a 0.4% rise accounted for 2/3 the gain. This advance was all in the seasonal adjustment as unadjusted prices were off 0.2%.
Also in core, commercial furniture posted a 0.4% rise and pharmaceuticals were up 0.3% to boost the total. But there were offsets in cars at a 0.5% decline and tires at a 0.4% drop. Footwear, women's apparel and jewelry prices also fell.
Overall, the top-line PPI was bigger than expected, but core remains in its recent 0.1 to 0.2 range, showing limited inflation pressure.
Intermediate PPI posted a 0.1% dip and crude rose 2.2% (due to oil, with core down 2.3%) show no real signs of sustained price pickups ahead.
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