Producer prices rebounded in May, climbing 0.5 percent, seasonally adjusted, according to the U.S. Bureau of Labor Statistics, attributable to prices for final demand goods which rose 1.3 percent. This was the second monthly increase in the past six months. Producer prices fell 1.1 percent on a yearly basis.
Eighty percent of the broad-based advance in prices for final demand goods is attributable to prices for final demand energy, which increased 5.9 percent. The gasoline index largely contributed to the increase, jumping 17 percent on a monthly basis.
The indexes for final demand goods less foods and energy and for final demand foods rose 0.2 percent and 0.8 percent, respectively.
The index for final demand services was unchanged in May. Prices for final demand services less trade, transportation, and warehousing moved down 0.2 percent, and the index for final demand transportation and warehousing services dropped 0.1 percent. In contrast, margins for final demand trade services advanced 0.6 percent.