Wholesale prices unexpectedly fell 0.2% in May

A measure of wholesale prices unexpectedly decreased in May, adding another piece of evidence that inflation is pulling back.

The producer price index, a gauge of prices that producers get for their goods and services in the open market, declined 0.2% for the month, the Labor Department’s Bureau of Labor Statistics reported Thusday. That reversed a 0.5% increase in April and compared to the Dow Jones estimate for a 0.1% increase.

Excluding food, energy and trade services, PPI was unchanged, compared to expectations for a 0.3% increase.

The release comes a day after the BLS reported that the consumer price index, a widely watched gauge of inflation that measures what consumers actually pay for goods and services, was unchanged on the month.

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