May Producer Prices Hold Steady Despite Tariff Pressures

Companies could be absorbing tariff-driven price increases rather than passing costs on to consumers.

An employee works on an assembly line at startup Rivian Automotive's electric vehicle factory in Normal, Ill. Reuters/Kamil Krzaczynski/File Photo

The producer price index (PPI)—a measure of prices paid by businesses for goods and services—rose less than expected in May, signaling that tariff-related inflation effects have yet to materialize.

According to the Bureau of Labor Statistics, the PPI increased by 0.1 percent in May, following an upwardly revised 0.2 percent decline in April. Goods inflation jumped by 0.2 percent, while services rose by 0.1 percent.