Press Release - PRODUCER PRICE INDEXES – MAY 2016
The Producer Price Index for final demand increased 0.4 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.2 percent in April and declined 0.1 percent in March. On an unadjusted basis, the final demand index inched down 0.1 percent for the 12 months ended in May. (See table A.)
In May, over 60 percent of the advance in the final demand index can be traced to prices for final demand goods, which climbed 0.7 percent. The index for final demand services moved up 0.2 percent.
Prices for final demand less foods, energy, and trade services edged down 0.1 percent in May after rising 0.3 percent in April. For the 12 months ended in May, the index for final demand less foods, energy, and trade services increased 0.8 percent.
Final Demand
Final demand goods: The index for final demand goods rose 0.7 percent in May, the largest advance since a 1.2-percent jump in May 2015. Two-thirds of the May 2016 increase can be traced to prices for final demand energy, which climbed 2.8 percent. The indexes for final demand goods less foods and energy and for final demand foods both moved up 0.3 percent.
Product detail: Over one-third of the increase in the index for final demand goods is attributable to gasoline prices, which advanced 6.6 percent. Prices for diesel fuel, iron and steel scrap, fresh and dry vegetables, jet fuel, and oilseeds also moved higher. In contrast, the index for beef and veal fell 5.2 percent. Prices for electric power and for carpets and rugs also decreased. (See table 4.)
Final demand services: The index for final demand services rose 0.2 percent in May after inching up 0.1 percent in April. The May increase can be traced to margins for final demand trade services, which advanced 1.2 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Conversely, prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services fell 0.2 percent and 0.6 percent, respectively.
Product detail: Leading the rise in prices for final demand services, margins for machinery and equipment wholesaling advanced 3.6 percent. The indexes for apparel, jewelry, footwear, and accessories retailing; inpatient care; residential property brokerage fees and commissions; flooring and floor coverings retailing; and legal services also increased. In contrast, prices for loan services (partial) declined 3.0 percent. The indexes for food retailing and airline passenger services also moved lower.
page source http://www.bls.gov/
