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Producer Price Index rose 0.4% in May, ex Fd & Engy up 0.1%
The Producer Price Index for final demand rose 0.4 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This increase followed declines of 1.3 percent in April and 0.2 percent in March. On an unadjusted basis, the final demand index decreased 0.8 percent for the 12 months ended in May.
In May, the advance in the final demand index is attributable to prices for final demand goods, which climbed 1.6 percent. In contrast, the index for final demand services fell 0.2 percent.
Prices for final demand less foods, energy, and trade services edged up 0.1 percent in May, following three consecutive declines. For the 12 months ended in May, the index for final demand less foods, energy, and trade services moved down 0.4 percent, the largest 12-month decrease since the index began in August 2013.
Final demand goods: The index for final demand goods rose 1.6 percent in May, the largest increase since the index began in November 2009. Nearly two-thirds of the advance can be traced to prices for final demand foods, which increased 6.0 percent. The index for final demand energy climbed 4.5 percent, while prices for goods less foods and energy were unchanged.
Product detail: Two-thirds of the May increase in the index for final demand goods is attributable to a 40.4-percent jump in meat prices. The indexes for gasoline, processed young chickens, light motor trucks, liquefied petroleum gas, and carbon steel scrap also moved higher. Conversely, prices for chicken eggs fell 41.2 percent. The indexes for diesel fuel and for plastic resins and materials also decreased.
Final demand services: The index for final demand services fell 0.2 percent in May, the same as in April. The May decrease can be attributed to margins for final demand trade services, which declined 0.8 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, prices for final demand transportation and warehousing services advanced 1.5 percent. The index for final demand services less trade, transportation, and warehousing was unchanged.
Product detail: Leading the May decline in the index for final demand services, margins for fuels and lubricants retailing dropped 13.1 percent. The indexes for loan services (partial); securities brokerage, dealing, investment advice, and related services; truck transportation of freight; machinery and vehicle wholesaling; and automobile and automobile parts retailing also moved lower. Conversely, prices for transportation of passengers (partial) rose 12.2 percent. The indexes for dental care and apparel, jewelry, footwear, and accessories retailing also increased.
Posted: June 11, 2020 Thursday 08:30 AM