Wholesale inflation undershot expectations last month, according to a Labor Department report that came a day after a weaker-than-forecast reading on consumer prices. Producer prices rose 0.1% in May from April,

U.S. wholesale prices rose modestly last month from a year earlier, another sign that inflationary pressures remain mild.

May’s softer PPI data missed forecasts, easing inflation fears and boosting odds the Fed may pause rate hikes—bearish for USD, bullish for equities.

US wholesale prices experienced a slight increase in May, according to government data released on Thursday. The producer price index rose by 0.1 percent, driven by a rebound in services costs and a jump in goods prices.

Treasury yields were declining Thursday morning as investors weighed fresh data on wholesale inflation that was softer than expected. The yield on the 10-year Treasury note was falling about 6 basis points to around 4.

Japan's wholesale prices rose 3.2% in May from a year earlier, data showed on Wednesday, slowing from April in a sign falling import costs for raw materials were easing price pressures for companies.

Here are the key points to know from this morning's consumer-price index for May: Year-over-year inflation picked up slightly, as expected, to 2.4%. For April, the [reading was 2.3%](

Consumer Price Index (CPI) is set to headline the week as the S&P 500 hovers near a new all-time high for the first time since February.

The report came out a day after the Labor Department said that consumer prices rose a modest 0.1% last month from April and 2.4% from a year earlier.

U.S. inflation picked up a bit last month as food costs rose, though overall inflation remained mostly tame. Consumer prices increased 2.4% in May compared with a year ago, according to a Labor Department report released Wednesday.