The 2020 Mid-Year Economic Update_long

Wholesale Prices Rise 0.9% in May


The Producer Price Index for Finished Goods increased 0.9 percent in May, the Bureau of Labor Statistics of the U.S. Department of Labor reported. This advance followed a 0.7-percent rise in April and a 1.0-percent increase in March.

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The index for finished goods excluding foods and energy moved up 0.2 percent in May after remaining unchanged in April. At the earlier stages of processing, prices received by producers of intermediate goods increased 1.1 percent in May after advancing 0.9 percent a month earlier, and the crude goods index turned up 2.0 percent following a decline of 1.5 percent in April.
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Among finished goods, the index for consumer goods less foods and energy moved up 0.3 percent in May after inching down 0.1 percent in the previous ...

concrete products also rose following no change a month earlier. Treated wood prices turned up after falling in the preceding month. The indexes for asphalt felts and coatings and for mineral wool for structural insulation declined less in May than they had a month earlier.
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Prices for intermediate foods and feeds inched up 0.1 percent following a 0.5-percent increase in April. The beef and veal index advanced 1.0 percent after moving up 2.4 percent in the previous month. Flour prices also rose less in May than they had a month earlier.
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The index for prepared animal feeds decreased more than it had in April, and prices for processed young chickens turned down in May after advancing in the prior month. By contrast, prices for dairy products climbed 4.5 percent subsequent to a 1.6-percent increase in April. The index for shortening and cooking oils also rose more than it had in the preceding month. Prices for pork and for sausage and deli meats turned up in May after declining in the previous month.
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Crude goods
The Producer Price Index for Crude Materials for Further Processing increased 2.0 percent in May after falling 1.5 percent in the preceding month. This reversal can be traced to the index for crude energy materials, which rose following a decline in April. By contrast, slightly counteracting the upturn in crude goods prices, the indexes for crude foodstuffs and feedstuffs and for crude nonfood materials less energy advanced less in May than they had in April.
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Prices for crude energy materials jumped 4.3 percent in May after dropping 4.9 percent in the prior month. This upturn is attributable to the natural gas index, which climbed 6.6 percent following a 13.0-percent decrease in April. By contrast, crude petroleum prices moved up 1.9 percent in May compared with a 7.9-percent rise a month earlier. For the second consecutive month, the coal index inched up at a 0.2-percent rate.
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The index for crude foodstuffs and feedstuffs increased 1.1 percent in May after advancing 1.3 percent in April. In May, higher prices for fluid milk, slaughter broilers and fryers, corn, soybeans, and fresh fruits and melons outweighed lower prices for fresh and dry vegetables, slaughter hogs, and unprocessed shellfish.
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The index for crude nonfood materials less energy edged up 0.1 percent in May following a 0.4-percent increase in April. In May, rising prices for copper base scrap, wastepaper, aluminum base scrap, and for construction sand, gravel, and crushed stone slightly outweighed declining prices for iron and steel scrap, raw cotton, gold ores, and for hardwood logs, bolts, and timber. for civilian aircraft, transformers and power regulators, both agricultural and mining machinery and equipment, and for welding machines and equipment slightly outweighed falling prices for electronic computers, communication and related equipment, passenger cars, x-ray and electromedical equipment, and light motor trucks.
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Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components rose 1.1 percent in May following a 0.9-percent increase in April. Prices for intermediate energy goods and materials for nondurable manufacturing advanced more than they had in the previous month.
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By contrast, partially offsetting the acceleration in intermediate goods prices, the indexes for materials for durable manufacturing, materials and components for construction, and intermediate foods and feeds rose less than they had in the prior month. Excluding foods and energy, prices for intermediate goods moved up 0.4 percent in May after rising 0.8 percent a month earlier.
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The intermediate energy goods index climbed 4.2 percent following a 1.3-percent increase in the preceding month. Jet fuel prices rose 3.0 percent after falling 2.1 percent in April. The indexes for natural gas to electric utilities, residual fuel, and both industrial and commercial natural gas also turned up in May following decreases in the prior month.
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Prices for gasoline, industrial electric power, and liquefied petroleum gas rose more than they had a month earlier. By contrast, diesel fuel prices fell 1.6 percent after moving up 1.7 percent in April. The commercial electric power and home heating oil indexes advanced less in May than they had in the previous month.
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The index for materials for nondurable manufacturing increased 2.9 percent after edging up 0.1 percent a month earlier. Prices for basic organic chemicals rose 3.3 percent in May following a 0.3-percent gain in the preceding month. The inedible fats and oils index also advanced more than it had in the prior month.
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Prices for plastic resins and materials turned up after declining in April, and the woodpulp index increased after no change a month earlier. By contrast, prices for nitrogenates moved down 0.3 percent following a 4.1-percent jump in the previous month. The indexes for phosphates and paperboard also turned down in May. Prices for paper fell more than they had in the prior month, and the index for paint materials rose less than in April.
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The materials for durable manufacturing index edged up 0.2 percent following a 3.7-percent increase in April. Prices for primary nonferrous metals advanced 1.5 percent after climbing 10.8 percent in the previous month. The indexes for steel mill products, copper and brass mill shapes, and building paper and board fell following advances a month earlier.
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Softwood lumber prices decreased more than they had in the preceding month. By contrast, prices for thermoplastic resins rose 3.8 percent in May after falling 2.2 percent in the prior month. The secondary aluminum and prepared paint indexes also turned up following declines a month earlier. Cement prices increased more than they had in April.
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The index for materials and components for construction advanced 0.3 percent after rising 0.6 percent in the preceding month. The nonferrous wire and cable index climbed 3.9 percent subsequent to an 8.4-percent jump a month earlier. Prices for steel mill products and for paving mixtures and blocks turned down in May following increases in April. The millwork index decreased after no change in the previous month. Prices for gypsum products and softwood lumber fell more than they had in the prior month.
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By contrast, the fabricated structural metal products index advanced 0.4 percent after no change in April. Prices for
The Producer Price Index for Finished Goods increased 0.9 percent in May, the Bureau of Labor Statistics of the U.S. Department of Labor reported. This advance followed a 0.7-percent rise in April and a 1.0-percent increase in March.

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The index for finished goods excluding foods and energy moved up 0.2 percent in May after remaining unchanged in April. At the earlier stages of processing, prices received by producers of intermediate goods increased 1.1 percent in May after advancing 0.9 percent a month earlier, and the crude goods index turned up 2.0 percent following a decline of 1.5 percent in April.
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Among finished goods, the index for consumer goods less foods and energy moved up 0.3 percent in May after inching down 0.1 percent in the previous month, while prices for energy goods gained 4.1 percent subsequent to a 3.4-percent increase in April.
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By contrast, slightly counteracting the overall acceleration in finished goods prices, the index for consumer foods decreased 0.2 percent in May compared with a 0.4-percent rise in the prior month. Prices for capital equipment edged up 0.1 percent for the second consecutive month.
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Before seasonal adjustment, the Producer Price Index for Finished Goods advanced 1.2 percent in May to 167.8 (1982 = 100). From May 2006 to May 2007, finished goods prices rose 4.1 percent. Over the same period, the index for finished consumer foods increased 8.5 percent, prices for finished energy goods rose 7.2 percent, and the index for finished goods less foods and energy moved up 1.6 percent. For the 12 months ended in May 2007, prices received by manufacturers of intermediate goods advanced 3.7 percent, and the crude goods index climbed 11.5 percent.
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Finished goods
Prices for finished consumer goods less foods and energy advanced 0.3 percent in May following a 0.1-percent decline in April. The pharmaceutical preparations index increased 0.4 percent after decreasing 0.2 percent a month earlier.
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Prices for household appliances, floor coverings, and tires also turned up in May. The indexes for passenger cars and light motor trucks declined less than in April. Prices for cosmetics and other toilet preparations advanced more than they had in the previous month. By contrast, slightly counteracting the upturn in the finished consumer goods less foods and energy index, prices for motor homes edged down 0.1 percent compared with a 2.7-percent rise a month earlier.
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The finished energy goods index rose 4.1 percent in May following a 3.4-percent advance in April. Leading this acceleration, prices for gasoline jumped 10.2 percent after rising 8.2 percent a month earlier. Similarly, the indexes for residential electric power, liquefied petroleum gas, and residential natural gas also increased more than they had in the preceding month. By contrast, prices for home heating oil rose 2.3 percent subsequent to a 4.8-percent gain in April. The diesel fuel index moved down following an increase in the prior month.
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The index for finished consumer foods declined 0.2 percent in May following a 0.4-percent advance in the preceding month. Prices for fresh and dry vegetables dropped 35.0 percent following an 8.9-percent increase in April. The index for processed young chickens also turned down in May, and prices for beef and veal rose less than they had in April. By contrast, the index for fresh fruits and melons climbed 12.1 percent in May subsequent to a 2.8-percent decrease in the previous month. Prices for eggs for fresh use, pork, and for sausages and deli meats also turned up in May. The indexes for dairy products and for processed fruits and vegetables increased more than they had in April.
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The capital equipment index inched up 0.1 percent in May, the same rate of advance as in the prior month. In May, rising prices

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