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Producer Price Index rose 0.1% in May, ex Fd & Engy up 0.4%
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The Producer Price Index for final demand rose 0.1 percent in May, seasonally adjusted, the U.S.
Bureau of Labor Statistics reported today. Final demand prices advanced 0.2 percent in April and
0.6 percent in March. (See table A.) On an unadjusted basis, the final demand index increased
1.8 percent for the 12 months ended in May.
In May, the rise in final demand prices is attributable to a 0.3-percent increase in the index for
final demand services. In contrast, prices for final demand goods declined 0.2 percent.
The index for final demand less foods, energy, and trade services moved up 0.4 percent in May,
the same as in April. For the 12 months ended in May, prices for final demand less foods,
energy, and trade services advanced 2.3 percent.
Final Demand
Final demand services: Prices for final demand services moved up 0.3 percent in May, the fourth
consecutive increase. Most of the May advance can be traced to the index for final demand services
less trade, transportation, and warehousing, which rose 0.5 percent. Prices for final demand
transportation and warehousing services climbed 0.7 percent. Conversely, margins for final demand
trade services fell 0.5 percent. (Trade indexes measure changes in margins received by wholesalers
and retailers.)
Product detail: Nearly 80 percent of the May advance in the index for final demand services is
attributable to prices for guestroom rental, which jumped 10.1 percent. The indexes for fuels and
lubricants retailing, outpatient care (partial), inpatient care, portfolio management, and transportation
of passengers (partial) also moved higher. In contrast, margins for apparel, footwear, and accessories
retailing declined 5.2 percent. The indexes for machinery, equipment, parts, and supplies wholesaling
and for loan services (partial) also decreased. (See table 4.)
Final demand goods: The index for final demand goods moved down 0.2 percent in May following
three consecutive increases. About three-quarters of the decrease can be traced to prices for final
demand energy, which fell 1.0 percent. The index for final demand foods declined 0.3 percent, while
prices for final demand goods less foods and energy were unchanged.
Product detail: Nearly 40 percent of the May decrease in the index for final demand goods is
attributable to prices for gasoline, which fell 1.7 percent. The indexes for diesel fuel, iron and steel
scrap, chicken eggs, beef and veal, and fresh fruits and melons also moved lower. Conversely, prices
for prepared poultry products increased 7.0 percent. The indexes for light motor trucks and jet fuel
also advanced.
Posted: June 11, 2019 Tuesday 08:30 AM