The headline PPI number fell 1.0 per cent, which was much more than the 0.6 per cent decline expected.
This was largely driven by a 4.3 per cent drop in energy prices. On energy:
The index for finished energy goods fell 4.3 per cent in May, the largest decline since a 4.6-per cent decrease in March 2009. An 8.9-per cent drop in the gasoline index accounted for over 80 per cent of the May decline. Lower prices for liquefied petroleum gas and residential natural gas also contributed to the decrease in the finished energy goods index.
Excluding food and energy, core PPI climbed by 0.2 per cent.
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The May producer price index (PPI) will be released in a few minutes.
Economists are looking for the headline number to decline 0.6 per cent on lower energy prices.
Excluding food and energy, core prices are expected to have increased by 0.2 per cent.
These readings would extend last months pattern when headline PPI fell 0.2 per cent and core PPI climbed 0.2 per cent.