Before seasonal adjustment, the Producer Price Index for Finished Goods increased 1.6 percent in May to 179.6 (1982 = 100). From May 2007 to May 2008, finished goods prices advanced 7.2 percent. Over the same period, the finished energy goods index rose 19.7 percent, prices for finished goods less foods and energy increased 3.0 percent, and the index for finished consumer foods climbed 6.5 percent. For the 12 months ended May 2008, prices received by manufacturers of intermediate goods advanced 12.6 percent, and the crude goods index jumped 41.5 percent.
Finished goods
The index for finished energy goods turned up 4.9 percent in May after decreasing 0.2 percent in the preceding month. The index for gasoline rose 9.3 percent following a 4.6-percent decrease in April. Prices for diesel fuel also turned up after declining in the prior month. The indexes for home heating oil, liquefied petroleum gas, and kerosene rose more than they had in April. Conversely, partially offsetting the upturn in finished energy goods prices, the advance in the index for residential electric power slowed to 0.6 percent in May from 1.2 percent a month earlier. Prices for residential natural gas also rose less than in April. The index for lubricating and similar oils was unchanged in May after increasing in the preceding month.
The index for finished consumer foods rose 0.8 percent in May following no change in the prior month. The index for beef and veal turned up 2.5 percent after falling 1.7 percent in April. Prices for natural cheese (except cottage cheese) also increased following declines a month earlier. The indexes for pork and snack chips rose more in May than in the preceding month. Prices for chicken eggs fell less than in April. By contrast, the index for melons turned down 14.3 percent in May after jumping 90.7 percent in the previous month. Prices for packaged fluid milk products and for dry, condensed, and evaporated milk products also fell after rising in April.
The rise in the index for finished goods less foods and energy slowed to 0.2 percent in May from 0.4 percent in the prior month. The index for pharmaceutical preparations increased 0.2 percent after rising 0.7 percent in April. Prices for light motor trucks, passenger cars, nonwood furniture and store fixtures, periodical circulation, and distilled bottled liquor (except brandy) turned down after advancing a month earlier. By contrast, the increase in the index for tobacco products accelerated to 2.2 percent in May from 0.1 percent in the previous month. Prices for aircraft also rose more than in April. The indexes for plastic products and for communication and related equipment turned up after falling in the preceding month.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 2.9 percent in May following a 0.9-percent increase in April. Prices for intermediate energy goods, materials for both durable and nondurable manufacturing, and materials and components for construction rose more than they had in the previous month. The index for intermediate foods and feeds turned up in May after falling a month earlier. By contrast, partially offsetting the acceleration in intermediate goods prices, the index for containers rose slightly less than in the prior month. Excluding prices for foods and energy, intermediate goods moved up 2.0 percent in May after rising 1.2 percent a month earlier.
The intermediate energy goods index climbed 6.2 percent following a 0.5-percent increase in the preceding month. Diesel fuel prices jumped 11.2 percent after falling 0.9 percent in April. The indexes for gasoline and residual fuels also turned up in May following decreases in the prior month. Prices for commercial electric power, utility natural gas, home heating oil, industrial electric power, and liquefied petroleum gas rose more than they had a month earlier. By contrast, the index for finished lubricants moved up 0.4 percent after advancing 2.9 percent in April.
Prices for materials for durable manufacturing climbed 4.5 percent following a 1.9-percent increase in April. The steel mill products index advanced 10.7 percent after rising 5.5 percent in the previous month. Prices for primary nonferrous metals, nonferrous wire and cable, refined lead, building paper and board, and cement turned up in May after falling a month earlier. The index for unfinished softwood lumber (not made from purchased materials) rose more than it had in the preceding month. By contrast, prices for aluminum mill shapes inched down 0.1 percent in May after increasing 3.2 percent in the prior month. The index for secondary aluminum rose less than it had in April.
The index for materials for nondurable manufacturing increased 3.2 percent after moving up 1.7 percent a month earlier. Prices for primary basic organic chemicals climbed 7.5 percent in May following a 3.8-percent advance in the preceding month. The indexes for plastic resins and materials, nitrogenates, newsprint, alkalies and chlorine,and for writing and printing papers also increased more than they had in the prior month. Conversely, the rise in prices for phosphates slowed from 11.1 percent in April to 5.4 percent in May. The indexes for intermediate basic organic chemicals and for processed yarns and threads also rose less than they had in April.
Prices for intermediate foods and feeds advanced 3.2 percent following a 0.6-percent decline in April. The index for corn, cottonseed, and soybean cake and meal increased 15.7 percent after falling 1.6 percent in the previous month. Prices for beef and veal and for natural cheese (except cottage cheese) also turned up in May. The indexes for shortening and cooking oils, pork, and for sugar and confectionery products rose more than they had in April. Flour prices fell less than in the prior month. By contrast, the index for fluid milk products declined 2.3 percent subsequent to a 2.9-percent gain in April. Prices for dry, condensed, and evaporated milk products and processed eggs also
turned down after rising in the preceding month.
The index for materials and components for construction advanced 2.1 percent after rising 1.0 percent in the preceding month. The nonferrous wire and cable index increased 2.2 percent subsequent to a 3.1-percent decline a month earlier. Prices for steel mill products, unfinished softwood lumber (not made from purchased materials), paving mixtures and blocks, and for asphalt felts and coatings rose more than they had in April. The indexes for plastic construction products and treated wood turned up in May following declines in the prior month. Conversely, prices for precast concrete products fell 2.3 percent after climbing 6.1 percent in April. The index for fabricated structural metal advanced less in May than a month earlier. Prices for switchgear and switchboard equipment turned down after rising in the preceding month.
The index for containers moved up 0.5 percent, slightly less than the 0.6-percent gain in April. In May, higher prices for barrels, drums, and pails; paper, plastic, and foil bags; steel cans; paper boxes and containers; and wooden boxes outweighed lower prices for glass containers; fiber and composite cans and related products; and aluminum cans.
Crude goods
The Producer Price Index for Crude Materials for Further Processing climbed 6.7 percent in May after rising 3.2 percent in April. Leading this acceleration, prices for crude energy materials advanced significantly more in May than they had a month earlier. Also contributing to this faster rate of increase, the index for crude foodstuffs and feedstuffs turned up after falling in April. By contrast, partially offsetting the acceleration in prices for crude goods, the index for crude nonfood materials less energy moved up less in May than it had in the previous month.
The index for crude energy materials jumped 13.1 percent in May after increasing 4.1 percent in April. Leading this broad-based acceleration, prices for natural gas surged 17.0 percent in May following a 4.3-percent advance in the prior month. The crude petroleum index rose 11.1 percent compared with a 4.5-percent gain in April. Coal prices climbed 2.9 percent in May after edging up 0.3 percent a month earlier.
The index for crude foodstuffs and feedstuffs increased 1.8 percent in May following a 0.9-percent decline in April. Slaughter cattle prices moved up 3.7 percent in May after no change in the preceding month. The indexes for wheat and for ungraded chicken eggs fell less than they had in April. Prices for slaughter hogs rose more in May than they had a month earlier. The fluid milk index was unchanged following a decrease in April, and prices for citrus fruits turned up in May. Conversely, corn prices declined 1.7 percent in May following a 6.6-percent advance in April. The indexes for Irish potatoes for processing and melons also turned down in May. Prices for rough rice increased less than they had in April.
The index for crude nonfood materials less energy rose 5.0 percent in May after climbing 7.9 percent in April. Price increases for iron and steel scrap slowed to 9.0 percent in May from 32.2 percent in the previous month. The indexes for phosphates and for cattle hides and skins also moved up less than they had in April. Prices for gold ores and corrugated wastepaper fell more than they had a month earlier. The nonferrous scrap index turned down in May, and iron ore prices were unchanged following advances in April. By contrast, the index for construction sand, gravel, and crushed stone rose 0.5 percent in May after declining 0.7 percent in the prior month. Prices for high grade
wastepaper and for plant and animal fibers also turned up after decreasing in April.
Net output price indexes
Mining, Utilities, and Manufacturing Industries. The Producer Price Index for the Net Output of Total Mining, Utilities, and Manufacturing Industries advanced 2.3 percent in May after increasing 1.2 percent in April. (Net output price indexes are not seasonally adjusted.) Prices received by the petroleum refining industry climbed 10.9 percent subsequent to a 3.4-percent gain a month earlier. The industry indexes for crude petroleum and natural gas extraction and for electric power distribution also rose more than they had in April. Prices received by animal slaughterhouses (excluding poultry) and cheese manufacturers turned up in May. By contrast, slightly offsetting the acceleration in the index for total mining, utilities, and manufacturing industries, the industry index for electric power generation declined 2.9 percent following a 7.0-percent increase in April. Prices received by manufacturers of automobile, light truck and utility vehicles also declined after rising in the prior month. In May, the index for total mining, utilities, and manufacturing industries was 114.2 (December 2006 = 100), 9.7 percent above its year-ago level.
Trade Industries. The Producer Price Index for the Net Output of Total Trade Industries increased 1.3 percent after moving up 1.2 percent in April. (Trade indexes measure changes in margins received by wholesalers and retailers.) In May, rising margins received by merchant wholesalers of both durable and nondurable goods, supermarkets and grocery stores, family clothing stores, and sporting goods stores outweighed falling margins received by gasoline stations, women's clothing stores, department stores, and hardware stores. In May, the index for total trade industries was 108.1 (December 2006 = 100), 3.3 percent above its year-ago level.
Transportation and Warehousing Industries. The Producer Price Index for the Net Output of Total Transportation and Warehousing Industries moved up 1.7 percent compared with a 1.2-percent gain in April. The index for the U.S. Postal Service rose 2.8 percent in May following no change a month earlier. Prices received by couriers, local general freight truckers, long distance general freight truckers (truckload), line haul railroads, and nonscheduled passenger air transporters advanced more than they had in the prior month. By contrast, the industry index for local specialized freight trucking of new goods increased 1.0 percent subsequent to a 6.9-percent rise in April. Prices received by the industries for scheduled passenger air transportation, freight transportation arrangement, and long distance general freight trucking (less than truckload) also advanced less in May than a month earlier. In May, the index for total transportation and warehousing industries was 112.4 (December 2006 = 100), 8.7 percent
above its year-ago level.
Traditional Service Industries. The Producer Price Index for the Net Output of Total Traditional Service Industries edged down 0.1 percent after advancing 0.7 percent in April. The industry index for commercial banking declined 1.4 percent in May compared with a 4.7-percent gain a month earlier. Prices received by cellular and other wireless carriers, investment bankers and securities dealers, non-casino hotels and motels, and software publishers also turned down in May. The industry index for offices of real estate agents and brokers decreased more than it had in April. By contrast, prices received by portfolio managers moved up 3.8 percent after falling 0.7 percent a month earlier. The indexes for the securities brokerage and passenger car rental industries also turned up in May. In May, the total traditional service industries index was 101.9 (December 2006 = 100), 1.0 percent above its year-ago level.
