Economic Data to Show Tame Price Increases

Economic reports this week are expected to show that tame price increases for most goods eased the effect of higher gasoline costs on inflation, analysts said.

That would clear the way for the Federal Reserve to lower interest rates for a sixth time when it meets as insurance to keep the economy growing.

On Thursday, the Labor Department report on May’s producer price index, a gauge of prices received by factories, farmers and other makers of goods, is likely to have increased 0.3%, analysts predict. The core index, which excludes energy and food, probably rose 0.2% in May, also the same as a month earlier.

Following that report is the consumer price index, which tracks retail prices for goods as well as services, on Friday. Analysts expect the CPI to have increased 0.4% in May after rising 0.3% in April. The core index is forecast to have increased 0.2% in May.

Other economic data coming this week:

Wednesday, the Fed will issue its regional economic outlook, known as the beige book, which is based on anecdotal information gathered by the Fed’s 12 regional banks and will help shape the discussion when central bankers meet June 26-27 to consider interest-rate policy.

Wednesday, the Commerce Department will report on retail sales in May.

Thursday, the Commerce Department will report on business inventories in April.

Thursday, the Labor Department reports on import prices in May.

Friday, the Fed will report on industrial production and plant-use rate in May.