Fed Hawks Frozen As Producer Prices Fall, Jobless Claims Leap

There was more favorable inflation news out of the US on Thursday. 24 hours after handing markets a very benign CPI report, the BLS said producer prices fell in May, surprising economists who collectively expected a small advance from the prior month. The 0.2% decline, the second drop in three months, came courtesy of the largest month-to-month decline on the goods side since October. The services gauge was unchanged. The ex-food and energy gauge was flat from April against expectations for