For the second consecutive days the U.S. economy received good news on the inflation front in the form of government data, with Thursday's drop indicating an unexpected decline in wholesale prices in May.

The producer price index (PPI) decreased by 0.2% last month, the Labor Department's Bureau of Labor Statistics reported. That's double the Dow Jones' estimate and a broad swing from the 0.5% increase in April.

Core PPI, a gauge of prices that producers get for their goods and services in the open market but excluding food, energy and trade services, remained unchanged in May. That's down from a 0.3% increase in April.

The news comes a day after the consumer price index (CPI) saw similar declines amid the Federal Reserve's ongoing battle with inflation. The CPI was unchanged in May despite a projected slight increase.

The CPI, which measures the change in the price of everyday items for U.S. consumers, was expected to rise 0.1%. The annual CPI came in at 3.4%, up slightly from a projected 3.3%. Core CPI rose 0.2% on the month and 3.4% for the year.

The Fed announced Wednesday its decision to hold interest rates at their highest point in 23 years. The central bank hopes to start cutting those rates by the end of the year.

Inflation