U.S. May PPI Quick Review

In May, the U.S. PPI increased by 2.6% year-on-year, in line with expectations, compared to a previous increase of 2.4%. The core PPI in May rose by 3% year-on-year, below the expected value of 3.1%, with the previous value also at 3.1%. Data shows that due to the suppression of costs for goods and services, producer price inflation in the U.S. remained moderate in May. Although the impact of tariff increases on Americans has been minimal so far, economists believe that as companies seek to guard against further softening of profit margins, price pressures will intensify in the second half of this year. PPI data indicates that profit margins for wholesalers and retailers increased in May, particularly in automotive and machinery wholesale, while profit margins had decreased in April. Profit margins have fluctuated month by month this year, highlighting the uncertainty of trade policies on prices and demand