Producer prices rose 0.4 percent in May, seasonally adjusted, after rising 0.2 percent in April, according to the U.S. Bureau of Labor Statistics. The majority of May’s increase was attributable to an increase in prices for final demand goods. Over the past 12 months, producer prices fell 0.1 percent.
Prices for final demand goods moved up 0.7 percent, the third increase in the past ten months. Approximately one third of the increase was due to a rise in gasoline prices which advanced 6.6 percent. Excluding food and energy, prices for final demand goods increased by 0.3 percent.
The index for final demand services rose 0.2 percent after moving up 0.1 percent in April. Most of the increase was due to margins for final demand trade services which advanced 1.2 percent. In contrast, prices for final demand services excluding trade, transportation and warehousing fell 0.2 percent. Prices for final demand transportation and warehousing services fell 0.6 percent.
Read the BLS release.