Core Producer Price inflation has slowed for six straight months to +2.3% YoY but the headline (NSA) data slowed to just 1.8% YoY (notably below the +2.0% expectation).
This is the weakest headline Producer Price inflation print since Jan 2017
Final Demand Goods prices shrank 0.2% in May as Services prices rose 0.3%...
Notably, nearly 80 percent of the May advance in the index for final demand services is attributable to prices for guestroom rental, which jumped 10.1 percent.
This is a rec0ord surge in guestroom rental prices on a non-seasonally-adjusted basis...
The indexes for fuels and lubricants retailing, outpatient care (partial), inpatient care, portfolio management, and transportation of passengers (partial) also moved higher.
In contrast, margins for apparel, footwear, and accessories retailing declined 5.2 percent. The indexes for machinery, equipment, parts, and supplies wholesaling and for loan services (partial) also decreased .
This headline print below the 2.0% Maginot Line, surely gives The Fed more ammo for its pre-crime "insurance cut"? However, the PPI (ex Food, Energy, and Trade Services) rose to +2.3% YoY.