The Commerce Department reported that the goods and services deficit narrowed to $55.9 billion in April, a $0.7 billion improvement from a revised $56.6 billion in March. Exports increased 2.6% to $327.1 billion, led by higher shipments of capital goods and industrial supplies, while imports rose 2.0% to $383.0 billion, driven by increases in capital goods and services imports. The goods deficit fell $2.4 billion to $83.7 billion, though the services surplus slipped $1.7 billion to $27.8 billion. Year-to-date, the overall deficit has narrowed by $213.5 billion, or 49.1%, compared with the same period in 2025, as exports grew $128.2 billion (11.3%) and imports declined $85.3 billion (5.5%). Additionally, the trade deficit with China narrowed by $2.6 billion to $12.0 billion in April, as U.S. exports decreased slightly to $10.1 billion and imports declined to $22.1 billion.

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 0.5% in May on a seasonally adjusted basis, following April’s 0.6% increase. Over the past 12 months, consumer prices climbed 4.2%, up from April’s 3.8%. Higher energy costs remained a major contributor, with the energy index rising 3.9% and accounting for over 60% of the monthly increase in the all items index, while gasoline prices advanced 7.0%. Food prices also moved higher, with the food index gaining 0.2%, including a 0.1% rise in grocery prices and a 0.3% increase in dining out costs. Shelter costs continued to rise, advancing 0.3%. Excluding food and energy, core CPI increased 0.2% for the month and 2.9% year over year, slightly above April’s 2.8% pace. Over the past year, notable increases included airline fares (+26.7%), apparel (+4.8%), household furnishings and operations (+3.0%), medical care (+2.6%), recreation (+2.6%), food (+3.1%), and energy (+23.5%).

The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) for final demand rose 1.1% in May on a seasonally adjusted basis, following a 1.1% increase in April. Over the past 12 months, final demand prices increased 6.5%, the largest 12-month advance since November 2022. Higher final demand goods prices were the primary driver, rising 2.8% and accounting for nearly 80% of the monthly increase in the overall final demand index. Final demand energy prices surged 10.7%, led by a 23.4% jump in gasoline prices. Food prices also increased, with the final demand foods index rising 0.6%, while final demand services advanced 0.3%, supported by a 2.6% increase in transportation and warehousing services. Excluding foods, energy, and trade services, core PPI increased 0.8% for the month and 5.1% year over year, marking the largest annual advance since October 2022. Over the past year, notable increases included final demand energy (+36.6%), transportation and warehousing services (+14.2%), goods less foods and energy (+5.1%), trade services (+4.1%), and foods (+2.6%).