US PPI remains moderate in May, tariff effect or "late strike"

A report released by the Bureau of Labor Statistics on Thursday showed that the core PPI data of the United States in May was less than expected due to the moderate impact of the cost of goods and services. Although the impact of higher tariffs on the American people is not yet significant, economists pointed out that price pressures may intensify in the second half of the year as companies try to avoid further weakening of profit margins. The PPI data showed that after falling in April, the profit margins of wholesalers and retailers expanded in May, especially in the wholesale sector of automobiles and machinery. Since the beginning of the year, profit margins have fluctuated month by month, highlighting the uncertainty of the impact of trade policy on prices and demand. Analysts have paid particular attention to the PPI report because some of its components are used to calculate the Federal Reserve's favored inflation measure (PCE data). Areas of weakness in May: Airfare prices, portfolio management fees fell, and healthcare costs remained modest. The PCE report is due later this month.