U.S. producer prices rebound in May

The wholesale cost of U.S. goods and services rebounded in May after three straight monthly declines. The produce price index rose 0.4% in May after a record 1.3% decline in the prior month. Economists polled by MarketWatch has predicted a 0.1% gain.

The rate of wholesale inflation in the past year was a negative 0.8% in May, up slightly from a negative 1.2% in the prior month.

What happened: Food and energy costs increased in May. Energy costs rose 4.5% after three straight declines. Food prices gained 6% last month

Stripping out food and energy, another measure of wholesale inflation known as core PPI rose 0.1% last month. The 12-month core rate slipped to negative 0.4% from negative 0.3% in April.

Big picture: Economists were expecting the rebound in energy prices in May. But other prices were a bit firmer than expected. Still, with the 12-month readings in negative territory, the report fits with the lack-of-inflation theme in the consumer price data released Thursday.