U.S. producer prices have not changed in may as energy costs recorded the largest decline in more than a year, suggesting that inflationary pressures have declined, after rising at the beginning of the year.
Signs of easing inflation came as soon as Fed officials gathered for a two-day meeting on Tuesday. The U.S. central bank is expected to raise interest rates following the meeting on Wednesday, however, the weakening inflation may limit the scope for further monetary policy tightening this year.
Prices of the United States government debt fell after the data. U.S. stock indexes were slightly stronger while the dollar .DXY weakened against a basket of currencies.