Producer Prices Post Largest Annual Gain Since 2012

Producer prices increased 0.5 percent in May, seasonally adjusted, after rising 0.1 percent in April, according to the U.S. Bureau of Labor Statistics. Producer prices rose 3.1 percent for the twelve months ended May 2017, the largest annual gain since January 2012.

The index for final demand goods surged 1.0 percent in May, after remaining unchanged last month. The index for final demand energy rose 4.6 percent, while prices for final demand goods less foods and energy grew 0.1 percent.

Prices for final demand services increased 0.3 percent. Prices for final demand transportation and warehousing grew 0.7 percent in May after increasing 0.6 percent in April. Prices for final demand trade rose 0.9 percent.

Read the BLS release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.