Wholesale inflation cools in May to lowest level in two years

Inflation at the wholesale level fell more than expected in May, the latest sign that painfully high consumer prices are beginning to loosen their stranglehold on the U.S. economy in the face of higher interest rates.

The Labor Department said Wednesday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, tumbled 0.3% in May from the previous month. On an annual basis, prices are up 1.1% – the lowest rate since December 2020. 

Those figures are both lower than the 1.5% headline figure and 0.1% monthly decline...