Producer Prices fell 1% in May, marking the third consecutive month that prices have failed to appreciate. Moreover, the largest price declines were seen at the early stages of production and are likely to be passed along.
Although finished goods appreciated 0.2%, earlier stages of production have fallen off, with intermediate goods falling 0.2% in May and crude goods falling 1.3%. The price appreciation from one year ago has fallen well below 1%, to 0.8%. Just 6 months ago prices were 5.7% above year ago levels.
Read the BLS release.