PRODUCER PRICES UNEXPECTEDLY CONTRACT

Producer prices contracted -0.2% in May.

Expectations were for growth 0f 0.1%, against 0.6% prior.

Ex- food and energy, prices contracted -0.1%.

Producer prices climbed 2% year-over-year.

The BOE warned yesterday interest rates could rise sooner than expected, and some believed the Fed might be inclined to pick up that baton. Today’s reading may put a damper on that call.

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