In May, most of the decline in the index for finished goods can be attributed to lower prices for energy goods, which fell 1.5 percent. Also contributing to lower finished goods prices, the index for finished consumer foods moved down 0.6 percent. By contrast, prices for finished goods less foods and energy rose 0.2 percent.
Finished energy: The index for finished energy goods fell 1.5 percent in May, its second consecutive monthly decline. Leading the May decrease, gasoline prices dropped 7.0 percent. Lower prices for liquefied petroleum gas and home heating oil also were factors in the finished energy goods decline.
Finished foods: Prices for finished consumer foods moved down 0.6 percent in May, their second straight monthly decrease. Accounting for most of the May decline, the index for fresh and dry vegetables fell 18.0 percent. Lower prices for processed young chickens also contributed to the decrease in the finished consumer foods index.
Finished core: The index for finished goods less foods and energy advanced 0.2 percent in May, its seventh consecutive monthly rise. About forty percent of the May increase can be attributed to prices for light motor trucks, which moved up 0.8 percent.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components rose 0.4 percent in May, its third straight monthly advance. Accounting for three-fourths of the broad-based May increase, prices for intermediate materials less foods and energy rose 0.3 percent. The indexes for intermediate energy goods and for intermediate foods and feeds also contributed to the overall advance, moving up 0.5 and 0.4 percent, respectively. On a 12-month basis, prices for intermediate goods climbed 8.5 percent in May, the sixth consecutive month of year-over-year increases.
Intermediate core: The index for intermediate materials less foods and energy moved up 0.3 percent in May, its twelfth consecutive monthly gain. About three-fourths of the May increase can be attributed to a 3.5-percent rise in prices for steel mill products. Advances in the indexes for paperboard and for hardboard, particleboard and fiberboard products also were factors in the intermediate core increase.
Intermediate energy: The index for intermediate energy goods moved up 0.5 percent in May, its third straight monthly advance. A major factor in the May increase was a 1.1-percent rise in prices for electric power. Higher prices for natural gas to electric utilities also contributed to the intermediate energy goods advance.
Intermediate foods: Prices for intermediate foods and feeds increased 0.4 percent in May after rising 0.5 percent a month earlier. The index for meats led the May advance, climbing 4.4 percent.
Crude goods
The Producer Price Index for Crude Materials for Further Processing fell 2.8 percent in May. For the 3-month period ending in May, crude materials prices moved down 0.8 percent this followed a 6.5-percent jump from November to February. In May, most of the broad-based monthly decline can be attributed to a 5.1-percent drop in the index for crude energy materials. Also contributing to the May decrease, prices for crude nonfood materials less energy moved down 1.6 percent and the index for crude foodstuffs and feedstuffs fell 0.6 percent.
Crude energy: The index for crude energy materials declined 5.1 percent in May. From February to May, prices for crude energy materials fell 9.5 percent subsequent to a 6.6-percent increase for the 3 months ending in February. The monthly decrease in May was the result of a 12.1-percent drop in crude petroleum prices.
Crude core: The index for crude nonfood materials less energy fell 1.6 percent in May. For the 3-month period ending in May, crude core prices rose 8.5 percent after climbing 10.6 percent from November to February. Leading the May decline, prices for iron and steel scrap dropped 5.7 percent. A decrease in the index for nonferrous scrap also contributed to the fall in crude core prices.
Crude foods: The index for crude foodstuffs and feedstuffs fell 0.6 percent in May. From February to May, crude foodstuffs and feedstuffs prices climbed 3.8 percent following a 4.8-percent rise in the previous 3-month period. A major contributor to the monthly decline in prices for crude foodstuffs and feedstuffs was the index for oilseeds, which fell 4.2 percent. A decrease in the index for fresh and dry vegetables was also a significant factor in the fall in prices for crude foodstuffs and feedstuffs.
Services Analysis
Trade industries: The Producer Price Index for the Net Output of Total Trade Industries rose 0.6 percent in May, its sixth increase in the last seven months. (Trade indexes measure changes in margins received by wholesalers and retailers.) Leading the May advance, margins received by general merchandise stores climbed 8.3 percent. Higher margins received by nondurable goods wholesalers and gasoline stations also were major factors in the May increase for the total trade industries index.
Transportation and warehousing industries: The Producer Price Index for the Net Output of Transportation and Warehousing Industries moved up 0.4 percent in May, its third consecutive advance. About sixty percent of the rise in May can be traced to prices received by the truck transportation industry group, which increased 0.8 percent. Higher prices received by the industries for scheduled freight air transportation and line-haul railroads also contributed to the advance in the transportation and warehousing industries index.
Traditional service industries: The Producer Price Index for the Net Output of Total Traditional Service Industries was unchanged in May following a 0.9-percent advance in April. In May, higher prices received by the investment banking and securities dealing industry and by savings institutions were offset by lower prices received by the industries for commercial banking and passenger car rental.
