The U.S. core Producer Price Index (PPI) for May fell short of forecasts, showing modest price increases despite expectations of more significant changes. The Bureau of Labor Statistics report indicated a moderation in inflationary pressures. Economists observe that while high tariffs haven’t significantly impacted consumers’ expenses yet, future price hikes might intensify later this year as businesses prioritize profit margins. The PPI data reveals an expansion in profits for wholesalers and retailers in May, particularly in the automotive and machinery wholesale sectors. These fluctuations highlight the evolving impact of trade policy on prices and demand, emphasizing the uncertainty surrounding future economic trends. Analysts closely monitor the PPI report, as some of its components are used to calculate the Federal Reserve’s PCE data, a measure reflecting inflation trends. In May, airline ticket costs, portfolio management fees, and medical expenses remained relatively stable, indicating moderate price levels. The PCE report is due for release later this month.