June 11 (UPI) -- National inflation settled a bit in May as the Producer Price Index climbed a seasonally adjusted 0.1 percent, the Labor Department said in its monthly report Tuesday -- right on target with analysts' expectations.
The department said the yearly increase slowed from 1.8 percent to 2.2 percent, a signal that inflation posed little threat to the domestic economy. The PPI measures the average change in producer prices for goods.
Tuesday's report said the price of gasoline fell 1.7 percent, accounting for 40 percent of the decrease in final demand goods. The cost of diesel fuel, iron, steel scrap, chicken eggs, beef, fresh fruits and melons also moved lower. Prices for prepared chicken products jumped 7 percent and the cost for light trucks and jet fuel also increased. Most experts projected a PPI rise of 0.1 percent.
"The report suggests limited pipeline inflationary pressures," Scott Brown, chief economist at Raymond James, told MarketWatch. "A softer global economy may be putting downward pressure on pipeline inflation in supplies and material, partly offsetting the impact on tariffs."
President Donald Trump reacted with a tweet, writing, "The United States has VERY LOW INFLATION, a beautiful thing!"
The price of processed goods for intermediate demand decreased 0.2 percent in May -- the largest decrease since January, when it fell 0.9 percent.
Tuesday's study shows little economic effect from U.S. tariffs on Chinese exports, but experts say that type of impact likely wouldn't have shown up in May.
"There's no evidence here of the latest increase in tariffs on Chinese goods, but any impact won't show up until the June data at the earliest," Capital Economics chief economist Paul Ashworth told CNBC.
The Labor Department's consumer price index -- the Federal Reserve's chief measure of inflationary change, which averages prices for consumers -- will be released Wednesday.