Inflationary pressures continue to ease, producer prices drop 0.3%

Wholesale prices in the United States dropped 0.3% from April to May, another sign that inflationary pressures continue to ease in the face of repeated interest rate hikes by the Federal Reserve. The Labor Department’s producer price index — which measures inflation before it reaches consumers — rose 1,1% last month from May 2022, the smallest year-over-year gain since Dec. 2020. Excluding volatile food and energy prices, so-called core wholesale inflation was up 0.2% last from April and 2.8% from a year earlier.