U.S. PPI maintained moderate tariff effect or "post-strike" in May
Internet reported that a report released by the U.S. Bureau of Labor Statistics on Thursday showed that the U.S. core PPI data in May fell short of expectations due to the moderate impact of the cost of goods and services. Although the current impact of higher tariffs on the American people is not significant, economists point out that price pressures may intensify in the second half of the year as companies try to avoid further weakening in profit margins. PPI data showed that profit margins for wholesalers and retailers expanded in May, especially in the wholesale sector of automobiles and machinery, following a decline in April. Since the beginning of this year, profit margins have fluctuated month by month, highlighting the uncertainty of the impact of trade policies on prices and demand. Analysts are particularly concerned about the PPI report because some of its components are used to calculate the Fed's preferred inflation measure (PCE data). Areas of weakness in May: Air ticket prices, portfolio management fees fell, and medical costs also remained moderate. The PCE report will be released later this month.
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