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Producer Price Index At a Glance

Finished Goods Index: Up 1.4%
Finished Goods Core: Up 0.2%
Finished Goods Annual Change: Up 7.2%
Finished Goods Energy: Up 4.9%
Finished Goods Food: Up 0.8%
Intermediate Goods Index: Up 2.9%
Crude Goods Index: Up 6.7%

Technorati Tags: PPI, inflation, Producer, Price, Index

Producer Price Index - May 2008

The Producer Price Index for Finished Goods increased 1.4 percent in May,
seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor
reported today. This rise followed a 0.2-percent advance in April and a 1.1-percent
increase in March. At the earlier stages of processing, prices received by producers of
intermediate goods rose 2.9 percent following a 0.9-percent advance a month earlier, and
the crude goods index increased 6.7 percent after climbing 3.2 percent in April. (See
table A.)

Table A. Monthly and annual percent changes in selected stage-of-processing price indexes, seasonally adjusted Month Finished goods Intermediate
goods Crude
goods
Total Foods Energy Except foods
and energy Change in
finished goods
from 12 months
ago (unadj.)

2007

May
0.6 -0.7 2.9 0.2 3.9 1.0 1.0

June
0.1 -0.2 -0.3 0.2 3.3 0.4 0.8

July
0.5 -0.1 2.2 0.2 4.2 0.7 0.3

Aug.
-0.8 0.0 -4.2 0.1 2.3 -0.9 -3.5

Sept.
0.5 1.1 1.2 0.1 4.4 0.0 0.9

Oct.
0.5 1.3 1.1 0.1 6.1 0.6 4.0

Nov.
2.6 -0.2 11.7 0.3 7.3 2.9 6.8

Dec.
-0.5 1.3 -3.5 0.1 6.2 0.2 1.8

2008

Jan.(1)
1.2 1.7 2.2 0.6 7.4 1.2 2.9

Feb.(1)
0.3 -0.6 0.6 0.5 6.4 0.7 3.9

Mar.
1.1 1.2 2.9 0.2 6.9 2.3 8.0

Apr.
0.2 0.0 -0.2 0.4 6.5 0.9 3.2

May
1.4 0.8 4.9 0.2 7.2 2.9 6.7

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2008 have been revised to reflect the availability of late reports and corrections by respondents.

In May, the index for finished energy goods turned up 4.9 percent after falling 0.2
percent a month earlier. Prices for finished consumer foods increased 0.8 percent
following no change in April. By contrast, partially offsetting the acceleration in the
finished goods index, the rise in the index for finished goods less foods and energy
slowed to 0.2 percent from 0.4 percent in the previous month.

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. (See table 2.)

Table B. Monthly and annual percent changes in selected price indexes for intermediate goods and crude goods, seasonally adjusted Month Intermediate goods Crude goods
Foods Energy Except
foods
and energy Change in
intermediate
goods from
12 months
ago (unadj.) Foods Energy Except
foods
and energy Change in
crude
goods from
12 months
ago (unadj.)

2007

May
0.0 2.8 0.5 3.8 0.8 3.0 -1.8 11.3

June
1.9 0.7 0.3 3.6 -0.1 2.2 -0.3 15.5

July
0.7 2.0 0.4 4.2 1.1 -0.5 0.7 12.9

Aug.
0.4 -2.9 -0.4 2.4 -1.6 -6.4 0.6 6.1

Sept.
1.3 -0.5 0.1 4.1 2.7 -0.8 2.2 11.3

Oct.
1.2 1.3 0.4 5.7 -0.2 8.2 1.5 26.8

Nov.
1.4 10.4 0.8 7.9 2.9 12.3 -0.9 20.9

Dec.
2.0 0.1 0.1 7.1 4.2 0.5 0.8 19.8

2008

Jan.(1)
3.5 1.9 0.9 8.9 3.1 1.8 4.7 30.8

Feb.(1)
2.2 1.0 0.5 8.8 0.6 6.5 3.7 24.6

Mar.
2.9 5.9 1.1 10.5 2.0 13.4 3.5 31.4

Apr.
-0.6 0.5 1.2 10.5 -0.9 4.1 7.9 34.3

May
3.2 6.2 2.0 12.6 1.8 13.1 5.0 41.5

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. (See table B.)

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. (See table 2.)

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. (See table B.)

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. (See table 2.)

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.

Producer Price Index (PPI) - May 2008 [PDF]

Source: Department of Labor, Bureau of Labor Statistics