US PPI remains moderate in May, tariff effect may be "late-moving"

Odaily Planet Daily News: The report released by the U.S. Bureau of Labor Statistics on Thursday showed that the U.S. core PPI data in May was lower than expected due to the mild impact of the cost of goods and services. Although the impact of higher tariffs on the American people is not yet significant, economists pointed out that price pressures may intensify in the second half of the year as companies try to avoid further weakening of profit margins. PPI data showed that after declining in April, profit margins of wholesalers and retailers expanded in May, especially in the wholesale of automobiles and machinery. Profit margins have fluctuated from month to month this year, highlighting the uncertainty of the impact of trade policies on prices and demand. Analysts are particularly concerned about the PPI report because some of its components are used to calculate the inflation indicator favored by the Federal Reserve (PCE data). Areas of weakness in May: Airfares, portfolio management fees fell, and medical costs also remained moderate. The PCE report will be released later this month. (Jinshi)