The Producer Price Index for final demand was unchanged in May, seasonally adjusted, according to the U.S. Bureau of Labor Statistics. Final demand prices rose 0.5 percent in April and edged down 0.1 percent in March. On an unadjusted basis, the final demand index increased 2.4 percent for the 12 months ended in May.
Within final demand in May, a 0.3 percent increase in the index for final demand services offset a 0.5 percent decline in prices for final demand goods.
Prices for final demand services rose 0.3 percent in May following a 0.4 percent advance in April. The May increase can be attributed to the index for final demand trade services, which moved up 1.1 percent. In contrast, prices for final demand services less trade, transportation, and warehousing fell 0.1 percent, and the index for final demand transportation and warehousing services declined 0.5 percent.
About half of the May increase in the index for final demand services can be traced to margins for fuels and lubricants retailing, which rose 16.1 percent.
Prices for final demand goods moved down 0.5 percent in May, the largest decrease since a 0.6-percent drop in February 2016. Most of the May decline can be attributed to the index for final demand energy, which fell 3 percent.
The May decrease in the index for final demand goods was led by an 11.2 percent drop in gasoline prices.
