Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 24-1125
8:30 a.m. (ET) Thursday, June 13, 2024

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                                PRODUCER PRICE INDEXES - MAY 2024


The Producer Price Index for final demand declined 0.2 percent in May, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.5 percent in 
April and edged down 0.1 percent in March. (See table A.) On an unadjusted basis, the index for 
final demand advanced 2.2 percent for the 12 months ended in May.

The May decrease in final demand prices can be attributed to a 0.8-percent decline in the index 
for final demand goods. Prices for final demand services were unchanged. 

Prices for final demand less foods, energy, and trade services were unchanged in May following 
a 0.5-percent increase in April. For the 12 months ended in May, the index for final demand less 
foods, energy, and trade services rose 3.2 percent.

Final Demand

Final demand goods: Prices for final demand goods fell 0.8 percent in May, the largest decline since 
moving down 1.2 percent in October 2023. Leading the May decrease, the index for final demand 
energy dropped 4.8 percent. Prices for final demand foods edged down 0.1 percent. In contrast, the 
index for final demand goods less foods and energy advanced 0.3 percent. 

Product detail: Nearly 60 percent of the May decrease in the index for final demand goods can be 
traced to a 7.1-percent decline in prices for gasoline. The indexes for diesel fuel, chicken eggs, 
electric power, jet fuel, and basic organic chemicals also fell. Conversely, prices for cigarettes rose 
3.3 percent. The indexes for hay, hayseeds, and oilseeds and for residual fuels also moved higher. 
(See table 2.)

Final demand services: Prices for final demand services were unchanged in May after increasing 
0.6 percent in April. In May, the indexes for final demand trade services and for final demand 
services less trade, transportation, and warehousing rose 0.2 percent and 0.1 percent, respectively. 
(Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, prices 
for final demand transportation and warehousing services fell 1.4 percent. 

Product detail: Within the index for final demand services in May, margins for fuels and lubricants 
retailing jumped 12.2 percent. The indexes for food and alcohol retailing; outpatient care (partial); 
automobiles and automobile parts retailing; and apparel, footwear, and accessories retailing also 
advanced. Conversely, prices for airline passenger services fell 4.3 percent. The indexes for 
machinery and vehicle wholesaling, professional and commercial equipment wholesaling, portfolio 
management, and truck transportation of freight also declined. 

Intermediate Demand by Commodity Type

Within intermediate demand in May, prices for processed goods fell 1.5 percent, the index for 
unprocessed goods decreased 1.8 percent, and prices for services edged up 0.1 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved down 1.5 percent in May, the largest decline since falling 2.3 percent in December 
2022. The May decrease is attributable to prices for processed energy goods, which dropped 8.0 
percent. In contrast, the index for processed materials less foods and energy advanced 0.1 percent, 
and prices for processed foods and feeds rose 0.3 percent. For the 12 months ended in May, the index 
for processed goods for intermediate demand moved down 0.7 percent. 

Product detail: About 80 percent of the May decline in the index for processed goods for 
intermediate demand can be attributed to prices for diesel fuel, which dropped 24.5 percent. The 
indexes for gasoline, industrial electric power, commercial electric power, basic organic chemicals, 
and jet fuel also decreased. Conversely, prices for nonferrous mill shapes increased 3.8 percent. The 
indexes for natural cheese (except cottage cheese) and for residual fuels also rose. 

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand moved down 1.8 percent in May, the largest decline since falling 4.1 percent in December 
2023. The May decrease can be traced to prices for unprocessed energy materials, which dropped 6.6 
percent. In contrast, the indexes for unprocessed nonfood materials less energy and for unprocessed 
foodstuffs and feedstuffs advanced 1.8 percent and 1.0 percent, respectively. For the 12 months 
ended in May, prices for unprocessed goods for intermediate demand declined 1.6 percent.

Product detail: Leading the May decrease in prices for unprocessed goods for intermediate demand, 
the index for crude petroleum fell 8.7 percent. Prices for slaughter hogs, ungraded chicken eggs, 
slaughter chickens, raw cotton, and raw milk also moved lower. Conversely, the index for aluminum 
base scrap jumped 18.0 percent. Prices for hay, hayseeds, and oilseeds and for natural gas also 
increased.

Services for intermediate demand: Prices for services for intermediate demand edged up 0.1 
percent in May, the third consecutive advance. Leading the May increase, the index for trade services 
for intermediate demand rose 0.7 percent. Prices for transportation and warehousing services for 
intermediate demand moved up 0.3 percent. The index for services less trade, transportation, and 
warehousing for intermediate demand was unchanged. For the 12 months ended in May, prices for 
services for intermediate demand rose 3.4 percent. 

Product detail: A major factor in the May increase in prices for services for intermediate demand was 
the index for machinery and equipment parts and supplies wholesaling, which advanced 1.6 percent. 
The indexes for arrangement of freight and cargo transportation, fuels and lubricants retailing, 
commercial and industrial machinery maintenance and repair, and investment banking also moved 
higher. In contrast, prices for airline passenger services declined 4.3 percent. The indexes for 
permanent placement services; portfolio management; and metals, minerals, and ores wholesaling 
also decreased. 

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand moved down 0.2 percent 
in May, the first decline since a 0.3-percent decrease in October 2023. In May, prices for total goods 
inputs to stage 4 intermediate demand fell 0.4 percent, while the index for total services inputs was 
unchanged. (See table D.) Decreasing prices for diesel fuel, gasoline, portfolio management, 
industrial electric power, commercial electric power, and airline passenger services outweighed 
advances in the indexes for machinery and equipment parts and supplies wholesaling, corn, and 
aluminum mill shapes. For the 12 months ended in May, prices for stage 4 intermediate demand rose 
2.3 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand fell 0.7 percent in May, 
the largest decrease since moving down 1.2 percent in May 2023. In May 2024, prices for total goods 
inputs to stage 3 intermediate demand dropped 1.8 percent. Conversely, the index for total services 
inputs rose 0.3 percent. Lower prices for diesel fuel, slaughter hogs, ungraded chicken eggs, jet fuel, 
gasoline, and permanent placement services outweighed advances in the indexes for arrangement of 
freight and cargo transportation, slaughter steers and heifers, and corn. For the 12 months ended in 
May, prices for stage 3 intermediate demand moved up 0.6 percent, the first increase since rising 2.4 
percent for the 12 months ended February 2023. 

Stage 2 intermediate demand: The index for stage 2 intermediate demand moved down 0.8 percent 
in May following a 1.4-percent increase in April. In May, prices for total goods inputs to stage 2 
intermediate demand dropped 2.4 percent. In contrast, the index for total services inputs rose 0.3 
percent. Declining prices for crude petroleum, basic organic chemicals, loan services (partial), diesel 
fuel, permanent placement services, and airline passenger services outweighed advances in the 
indexes for arrangement of freight and cargo transportation, fuels and lubricants retailing, and 
oilseeds. For the 12 months ended in May, prices for stage 2 intermediate demand moved up 1.3 
percent, the largest increase since rising 5.5 percent for the 12 months ended January 2023. 

Stage 1 intermediate demand: The index for stage 1 intermediate demand fell 0.8 percent in May, 
the largest decrease since declining 0.8 percent in May 2023. In May 2024, prices for total goods 
inputs to stage 1 intermediate demand dropped 1.6 percent, while the index for total services inputs 
was unchanged. Declining prices for diesel fuel, airline passenger services, gasoline, basic organic 
chemicals, industrial electric power, and natural gas to electric utilities outweighed advances in the 
indexes for corn, aluminum base scrap, and fuels and lubricants retailing. For the 12 months ended in 
May, prices for stage 1 intermediate demand moved up 0.7 percent. 

________________
The Producer Price Index for June 2024 is scheduled to be released on Friday, July 12, 2024, 
at 8:30 a.m. (ET).