FX.co ★ US PPI Seen Rebounding in May

U.S. producer prices are anticipated to climb by 0.2% month-over-month in May 2025, recovering from a 0.5% decrease in April, marking the steepest drop since April 2020. Investors will be closely monitoring for indications of inflationary pressures associated with tariffs. The core Producer Price Index (PPI), which excludes the volatile categories of food and energy, is expected to rise by 0.3% in May, after experiencing a 0.4% decline in the prior month, the sharpest decrease observed since 2015. Annually, headline producer inflation is projected to increase to 2.6% from 2.4%. Conversely, core producer inflation is anticipated to remain steady at 3.1%.