US PPI Figures
According to the US Labor Statistics, PPI (Producer Price Index) for final demand grew 0.5% seasonally adjusted in May. Final demand prices rose 0.1% in April and 0.3% in March. In unadjusted terms, the final demand index increased 3.1% for the 12 months ended in May, marking the biggest yearly advance in 6 years.
May’s increase in PPI was due to 1.0% rise in prices for final demand goods. The index for final demand services was up 0.3%. Excluding foods, energy, and trade services, prices for final demand lifted 0.1%. For the 12 months ended in May, this index edged up 2.6%.
The index for final demand goods rose 1.0%, marking the biggest increase in 3 years. Over 80% of rise in prices for final demand goods was attributed to growth in the index for final demand energy (up 4.6%) and increase in gasoline prices. Excluding foods and energy, prices for final demand goods grew 0.3% and prices for final demand foods were up 0.1%.
The indexes for jet fuel, fresh and dry vegetables, diesel fuel, beef, veal and light motor trucks improved as well. Prices for chicken eggs, on the other hand, dropped 31.2%. The indexes for residential natural gas and for plastic resins and materials also weakened.
Prices for final demand services rose 0.3%. The rise was due to growing final demand trade services (up 0.9%). Prices for final demand transportation and warehousing services were up 0.7%. Excluding trade, transportation, and warehousing, the index for final demand services remained unchanged. The indexes for chemicals and allied products wholesaling; outpatient care (partial); apparel, footwear, and accessories retailing; food retailing; and truck transportation of freight have altogether increased. Prices for guestroom rental, however, declined 4.4%. The indexes for fuels and lubricants retailing and for hospital inpatient care decreased.