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Zhitong Finance learned that the U.S. producer price index (PPI) unexpectedly fell in May, the largest drop in seven months, which seems to further prove that U.S. inflation pressure is easing. Data released by the U.S. Bureau of Labor Statistics on Thursday showed that the U.S. PPI annual rate in May was 2.2%, lower than the expected 2.50% and the previous value of 2.20%. The U.S. PPI monthly rate in May was -0.2%, expected to be 0.10%, and the previous value was 0.50%. Nearly 60% of the decline in the commodity PPI in May was due to falling gasoline prices. Diesel, commercial electricity and aviation fuel prices also fell. Commodity prices fell 0.8% overall, the largest drop since October last year. But service costs remained unchanged. Several categories in the PPI report used to calculate the Federal Reserve's preferred inflation measure (PCE price index) showed signs of cooling inflation in May. Among them, air ticket prices fell 4.3%, and portfolio management service prices fell 1.8%. Doctors' care costs remained flat, and hospital outpatient costs rose 0.5%. The PCE price index for May will be released later this month. Excluding food, energy and trade services, the core PPI index was flat in May, the mildest in a year, with expectations for a 0.3% increase and a previous value of 0.5%. The cost of processed products for intermediate demand, which reflects prices early in the production pipeline, fell 1.5%, the biggest drop since the end of 2022. This reflects a sharp drop in energy costs. The U.S. producer price index unexpectedly fell in May due to lower energy costs, another sign that inflation is retreating after a surge in the first quarter. Before the release of the PPI report, the previous CPI data in May also showed a general cooling of the economy. The previous cooling of CPI data across the board boosted financial market hopes that the Federal Reserve will start cutting interest rates in September. Since July last year, Fed officials have kept the benchmark interest rate at its highest level in more than 20 years. The Fed's dot plot on Wednesday showed that they expect only one rate cut this year while waiting for further progress on inflation. Another report released at the same time on Thursday showed signs of a cooling in the U.S. job market - the number of initial jobless claims rose to the highest level since August last week. The number of initial jobless claims in the United States for the week ending June 8 was 242,000, the highest since the week ending August 12, 2023. After the release of these two data, U.S. Treasury yields fell; the 10-year yield fell 3.00 basis points to 4.266%. Major stock index futures rose. Spot gold rose by more than $10 in the short term and is now at $2,316.19 per ounce. The U.S. dollar index DXY fell nearly 30 points in the short term and is now at 104.66.