The Producer Price Index for Finished Goods increased 0.5 percent in June, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported. This rise followed advances of 0.2 percent in May and 0.9 percent in April. At the earlier stages of processing, prices received by producers of intermediate goods climbed 0.7 percent in June after increasing 1.1 percent in the prior month, and the crude goods index fell 1.7 percent following a 2.0% gain in May.
Among prices for finished goods, the index for consumer foods moved up 1.4 percent in June after decreasing 0.5 percent in May. Prices for energy goods rose 0.7 percent following a 0.4-advance in the previous month. By contrast, the index for finished goods other than foods and energy increased 0.2 percent in June compared with a 0.3% rise in May.
During the first 6 months of 2006, the finished goods index rose at a 2.1% seasonally adjusted annual rate (SAAR) after moving up at a 7.5% SAAR during the latter half of 2005. Leading this slower rate of advance, prices for finished energy goods climbed at a 4.1% SAAR from December 2005 to June 2006 after advancing at a 36.3% SAAR for the 6 months ended December 2005. The index for finished consumer foods declined at a 2.3% SAAR during the first half of 2006 after increasing at a 3.6% SAAR during the second half of 2005. By contrast, prices for finished goods other than foods and energy advanced at a 3.1% SAAR for the 6 months ended in June after rising at a 0.6% SAAR during the prior 6 month period. At the earlier stages of processing, the intermediate goods index increased at a 6.6% SAAR from December 2005 to June 2006 after moving up at a 12.1% SAAR during the latter half of 2005, and prices for crude goods fell at a 19.1% SAAR for the 6 months ended in June after surging at a 46.1% SAAR for the 6 months ended December 2005.
Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.3 percent in June to 161.7 (1982 = 100). From June 2005 to June 2006, prices for finished goods increased 4.9 percent. Over the same period, the index for finished energy goods climbed 19.1 percent, prices for finished goods other than foods and energy advanced 1.9 percent, and the index for finished consumer foods rose 0.6 percent. For the 12 months ended June 2006, prices received by intermediate goods producers moved up 9.3 percent, and the crude goods index increased 8.6 percent.
Finished goods Prices for finished energy goods rose 0.7 percent in June after moving up 0.4 percent in May. Leading this acceleration, the gasoline index climbed 6.3 percent following a 2.2% increase in the preceding month. Prices for home heating oil and diesel fuel also rose more in June than they had a month earlier. The index for lubricating and similar oils, which was unchanged in May, advanced in June. By contrast, prices for residential electric power fell 2.8 percent in June after inching up 0.1 percent in the prior month. The index for residential natural gas declined at a faster rate than it had in May, while prices for liquefied petroleum gas and kerosene rose less than in the previous month.
The index for finished goods other than foods and energy increased 0.2 percent in June following a 0.3% advance in May. In June, rising prices for passenger cars, light motor trucks, civilian aircraft, pharmaceutical preparations, alcoholic beverages, and mobile homes outweighed falling prices for platinum and karat gold jewelry; home electronic equipment; electronic computers; and women's, girls', and infants' apparel.
Intermediate goods The Producer Price Index for Intermediate Materials, Supplies, and Components rose 0.7 percent in June following a 1.1%