WASHINGTON — The May producer price index printed up 0.2% and core was down 0.1% — 0.0583% unrounded — far lower than feared. Overall PPI was off 5.0% and core up 3.0% over the year, showing further moderation. The index is now declining at its fastest pace since a 5.2% rate of decline in August 1949.

Energy jumped 2.9% as gasoline prices surged 13.9% in the biggest jump since January. Only residential natural gas was lower in the energy complex.

Food declined 1.6% as eggs, vegetables, fruit and pork fell in price. This lessened the overall gain.

Core inflation was held down by a 1.3% slide in cosmetics, a 0.9% drop in civilian aircraft, a 0.9% decline in electronics, and a 0.3% fall in pharmaceuticals.

— Market News International

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