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Producer prices climb 6.6% in May on annual basis, largest 12-month increase on record

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CNBC/Jeff Cox/6-15-2021

“On a monthly basis, the producer price index for final demand rose 0.8%, ahead of the Dow Jones estimate of 0.5%. Those higher price pressures came amid a pronounced dip in retail sales, which fell 1.3% in May, worse than the 0.6% estimate, according to the Census Bureau.”

USAGOLD note: Gold failed to respond to this morning’s producer prices report because inflation is only one-half the equation. The other half is “What, if anything, is the Fed going to do about it?” We’ll know more by Wednesday afternoon.

line chart showing the producer price index through May 2021 on the increase

Sources: St. Louis Federal Reserve [FRED], Bureau of Labor Statistics

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