Wholesale Prices Blip Up 0.1 Percent in May

The small uptick is another sign that inflation remains under control.

Id 40763 Screw 1052508 1920

U.S. wholesale prices rose just 0.1 percent in May month, another sign that inflation remains under control.

The Labor Department says the increase last month in its producer price index, which measures inflation pressures before they reach consumers, was half April's 0.2 percent increase.

The entire gain in May came from a 0.3 percent increase in the wholesale price of services. Goods prices fell 0.2 percent.

Over the past year, producer prices have risen 1.8 percent. Excluding the volatile food and energy categories, wholesale prices rose 0.2 percent in May from April and 2.3 percent from May 2018.

Inflation remains tame, enabling the Federal Reserve to stop raising interest rates after four hikes in 2018. Investors increasingly expect the Fed to cut rates amid signs the U.S. and world economies are decelerating.

More in Economy