Producer prices unchanged in May as energy costs decline

Washington

US producer prices were unchanged in May as energy costs recorded their biggest decline in more than a year, suggesting that inflation pressures were easing after rising at the start of the year.

Signs of abating inflation came as Federal Reserve officials prepared to gather for a two-day policy meeting on Tuesday. The US central bank is expected to raise interest rates at the end of the meeting on Wednesday, but weakening inflation could limit the scope for further monetary policy tightening this year.