The US PPI in May maintained a mild tariff effect or a "late-strike"
a day ago
Odaily News The report released by the U.S. Bureau of Labor Statistics on Thursday showed that the U.S. core PPI data in May was lower than expected, affected by the mild cost of goods and services. Although the impact of higher tariffs on the American people is not significant at present, economists point out that price pressures may intensify in the second half of the year as companies try to avoid further weakening profit margins. PPI data showed that after declining in April, profit margins of wholesalers and retailers widened in May, especially in the wholesale of automobiles and machinery. Profit margins have fluctuated from month to month this year, highlighting the uncertainty of the impact of trade policies on prices and demand. Analysts pay special attention to the PPI report because some of its components are used to calculate the inflation indicator favored by the Federal Reserve (PCE data). Areas of weakness in May: Airfares, portfolio management fees fell, and medical costs also remained moderate. The PCE report will be released later this month. (Jinshi)
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