Underlying U.S. Producer Prices Rise at Slowest Pace in Year

A measure of underlying U.S. producer prices rose at the slowest pace in more than a year, signaling inflation pressures remain muted and potentially reinforcing calls for the Federal Reserve to cut interest rates.

Excluding food and energy, producer prices increased 2.3% in May from a year earlier -- the least since January 2018 and matching forecasts -- following a 2.4% gain in the prior month, a Labor Department report showed Tuesday. The overall producer-price index was up 1.8% from a year earlier, below projections, following a 2.2% increase.