Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 18-0997 
8:30 a.m. (EDT), Wednesday, June 13, 2018

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                                   PRODUCER PRICE INDEXES - MAY 2018


The Producer Price Index for final demand rose 0.5 percent in May, seasonally adjusted, the U.S. 
Bureau of Labor Statistics reported today. Final demand prices advanced 0.1 percent in April and 
0.3 percent in March. (See table A.) On an unadjusted basis, the final demand index moved up 
3.1 percent for the 12 months ended in May, the largest 12-month increase since climbing 3.1 
percent in January 2012.

In May, 60 percent of the rise in the index for final demand is attributable to a 1.0-percent 
advance in prices for final demand goods. The index for final demand services moved up 0.3 
percent.

Prices for final demand less foods, energy, and trade services edged up 0.1 percent in May, the 
same as in April. For the 12 months ended in May, the index for final demand less foods, energy, 
and trade services climbed 2.6 percent. 

Final Demand

Final demand goods: The index for final demand goods moved up 1.0 percent in May, the largest 
advance since a 1.1-percent rise in May 2015. In May 2018, over 80 percent of the broad-based 
increase in prices for final demand goods can be traced to the index for final demand energy, which 
jumped 4.6 percent. Prices for final demand goods less foods and energy and for final demand foods 
rose 0.3 percent and 0.1 percent, respectively.

Product detail: Half of the advance in the index for final demand goods is attributable to a 9.8-
percent increase in gasoline prices. The indexes for jet fuel, fresh and dry vegetables, diesel fuel, beef 
and veal, and light motor trucks also moved higher. In contrast, prices for chicken eggs fell 31.2 
percent. The indexes for residential natural gas and for plastic resins and materials also decreased. 
(See table 4.)

Final demand services: Prices for final demand services moved up 0.3 percent in May, the fifth 
consecutive rise. In May, 80 percent of the advance in the index for final demand services can be 
traced to margins for final demand trade services, which climbed 0.9 percent. (Trade indexes 
measure changes in margins received by wholesalers and retailers.) Prices for final demand 
transportation and warehousing services increased 0.7 percent. The index for final demand services 
less trade, transportation, and warehousing was unchanged.   

Product detail: One-third of the May advance in prices for final demand services is attributable to a 
1.5-percent rise in margins for machinery, equipment, parts, and supplies wholesaling. The indexes 
for chemicals and allied products wholesaling; outpatient care (partial); apparel, footwear, and 
accessories retailing; food retailing; and truck transportation of freight also moved higher. 
Conversely, prices for guestroom rental fell 4.4 percent. The indexes for fuels and lubricants retailing 
and for hospital inpatient care also moved lower.

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
Month Total
final
demand
Final
demand
less
foods,
energy,
and
trade
Final demand goods Final demand services Change
in final
demand
from 12
months
ago
(unadj.)
Change
in final
demand
less
foods,
energy,
and
trade
from 12
mo. ago
(unadj.)
Total Foods Energy Less
foods
and
energy
Total Trade Transportation
and
warehousing
Other

2017

May

0.1 0.1 -0.5 -0.8 -2.0 -0.1 0.4 0.8 0.2 0.2 2.3 2.1

June

0.1 0.2 0.0 0.3 -0.1 0.1 0.1 -0.3 0.2 0.2 1.9 2.1

July

0.1 0.1 0.0 0.0 -0.3 0.1 0.1 0.2 -0.4 0.2 2.0 2.0

Aug.

0.3 0.1 0.5 -0.7 3.1 0.2 0.2 0.5 0.2 0.0 2.4 1.9

Sept.

0.3 0.2 0.6 -0.1 2.9 0.2 0.2 -0.2 1.3 0.1 2.6 2.1

Oct.

0.4 0.4 0.3 0.3 0.2 0.3 0.5 0.9 0.7 0.4 2.8 2.4

Nov.

0.4 0.2 0.8 0.2 3.5 0.3 0.1 -0.3 0.9 0.2 3.0 2.4

Dec.

0.0 0.1 0.1 -0.2 0.2 0.1 -0.2 -0.4 -0.6 0.2 2.5 2.3

2018

Jan.(1)

0.5 0.5 0.6 0.1 2.9 0.3 0.5 0.4 -0.2 0.5 2.6 2.5

Feb.(1)

0.2 0.3 0.0 -0.6 0.1 0.2 0.3 0.1 1.1 0.3 2.8 2.7

Mar.

0.3 0.4 0.3 2.2 -2.1 0.3 0.3 0.2 0.6 0.3 3.0 2.9

Apr.

0.1 0.1 0.0 -1.1 0.1 0.3 0.1 0.2 0.6 -0.1 2.6 2.5

May

0.5 0.1 1.0 0.1 4.6 0.3 0.3 0.9 0.7 0.0 3.1 2.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2018 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in May, prices for processed goods advanced 1.5 percent, the index for 
unprocessed goods rose 2.5 percent, and prices for services moved up 0.3 percent. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand increased 1.5 percent in May, the largest rise since climbing 1.5 percent in February 2011. In 
May, 60 percent of the broad-based advance can be traced to prices for processed energy goods, 
which jumped 4.6 percent. The index for processed materials less foods and energy increased 0.8 
percent, and prices for processed foods and feeds moved up 0.2 percent. For the 12 months ended in 
May, the index for processed goods for intermediate demand climbed 6.3 percent, the largest 12-
month rise since a 7.2-percent advance in November 2011.

Product detail: In May, a major factor in the increase in prices for processed goods for intermediate 
demand was the index for diesel fuel, which jumped 6.5 percent. Prices for gasoline, steel mill 
products, jet fuel, commercial electric power, and beef and veal also moved higher. In contrast, the 
index for processed eggs fell 19.2 percent. Prices for plastic resins and materials and for processed 
poultry also decreased. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand advanced 2.5 percent in May, the largest rise since moving up 2.6 percent in November 
2017. In May, the increase is attributable to prices for unprocessed energy materials, which climbed 
6.3 percent. Conversely, the indexes for unprocessed foodstuffs and feedstuffs and for unprocessed 
nonfood materials less energy both edged down 0.1 percent. For the 12 months ended in May, the 
index for unprocessed goods for intermediate demand advanced 6.8 percent.

Product detail: Nearly three-quarters of the May increase in the index for unprocessed goods for 
intermediate demand is attributable to prices for crude petroleum, which jumped 8.4 percent. The 
indexes for natural gas, slaughter hogs, raw milk, slaughter poultry, and aluminum base scrap also 
advanced. In contrast, prices for slaughter cattle fell 3.9 percent. The indexes for hay, hayseeds, and 
oilseeds and corrugated wastepaper also declined.

Table B. Monthly and 12-month percent changes in selected intermediate demand price indexes for goods by commodity type, seasonally adjusted
Month Processed goods for intermediate demand Unprocessed goods for intermediate demand
Total Foods
and
feeds
Energy
goods
Less
foods
and
energy
Total,
change
from 12
months
ago
(unadj.)
Total Foodstuffs
and
feedstuffs
Energy
materials
Nonfood
materials
less
energy
Total,
change
from 12
months
ago
(unadj.)

2017

May

0.0 0.5 -0.2 -0.1 4.6 -1.1 1.4 -4.1 -0.7 8.5

June

0.2 0.7 0.3 0.1 3.8 0.0 0.8 -1.4 0.6 5.8

July

-0.1 -0.2 0.1 -0.1 3.6 0.3 0.6 -0.8 0.8 6.0

Aug.

0.5 -0.3 1.4 0.4 4.1 -0.7 -3.6 1.3 1.3 7.0

Sept.

0.6 -0.8 2.5 0.3 4.5 0.5 -1.0 1.4 1.4 7.7

Oct.

0.6 0.5 1.6 0.4 4.8 0.5 1.2 1.8 -2.6 8.5

Nov.

0.8 -0.2 2.5 0.5 5.4 2.6 2.5 4.7 -0.2 11.0

Dec.

0.3 0.1 0.8 0.2 5.0 1.3 -0.7 3.3 1.8 5.0

2018

Jan.(1)

0.8 0.1 2.1 0.5 4.7 1.9 -0.6 3.5 3.5 3.3

Feb.(1)

0.6 1.1 0.7 0.6 4.8 2.0 1.6 3.9 -0.3 5.6

Mar.

-0.3 1.4 -3.1 0.3 4.6 -4.8 -1.0 -11.6 1.5 4.2

Apr.

0.5 0.3 1.3 0.3 4.7 0.9 -2.1 3.8 0.7 3.2

May

1.5 0.2 4.6 0.8 6.3 2.5 -0.1 6.3 -0.1 6.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2018 have been revised to reflect the availability of late reports and corrections by respondents.

Services for intermediate demand: The index for services for intermediate demand increased 0.3 
percent in May, the same as in both March and April. In May, half of the broad-based advance can be 
traced to margins for trade services for intermediate demand, which moved up 0.9 percent. Prices for 
services less trade, transportation, and warehousing for intermediate demand and for transportation 
and warehousing services for intermediate demand climbed 0.1 percent and 0.4 percent, respectively. 
For the 12 months ended in May, the index for services for intermediate demand increased 3.3 
percent.

Product detail: Nearly 40 percent of the May advance in prices for services for intermediate demand 
is attributable to a 5.5-percent rise in margins for chemicals and allied products wholesaling. The 
indexes for business loans (partial); metals, minerals, and ores wholesaling; machinery and 
equipment parts and supplies wholesaling; insurance; and courier, messenger, and U.S. postal 
services also moved higher. Conversely, prices for co-employment staffing services fell 2.0 percent. 
The indexes for accounting services (partial) and for paper and plastics products wholesaling also 
decreased.

Table C. Monthly and 12-month percent changes in selected intermediate demand price indexes for services by commodity type, seasonally adjusted
Month Services for intermediate demand
Total Trade Transportation
and
warehousing
Other Total, change
from 12 months
ago (unadj.)

2017

May

0.2 0.3 0.2 0.2 2.7

June

0.3 0.0 0.1 0.5 2.8

July

0.1 0.1 0.0 0.1 2.2

Aug.

0.2 0.3 0.2 0.2 2.8

Sept.

0.2 -0.3 0.7 0.1 2.8

Oct.

0.6 1.0 0.6 0.6 3.3

Nov.

0.2 -0.3 0.6 0.2 3.2

Dec.

0.2 0.4 -0.1 0.2 2.9

2018

Jan.(1)

0.3 0.4 0.1 0.3 3.2

Feb.(1)

0.2 -0.5 0.5 0.3 2.9

Mar.

0.3 1.7 0.5 0.1 3.2

Apr.

0.3 0.9 0.5 0.2 3.1

May

0.3 0.9 0.4 0.1 3.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2018 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand increased 0.7 percent in 
May, the tenth consecutive advance. In May, the index for total goods inputs to stage 4 intermediate 
demand rose 0.9 percent, and prices for total services inputs moved up 0.4 percent. (See table D.) 
Increases in the indexes for diesel fuel; chemicals and allied products wholesaling; machinery and 
equipment parts and supplies wholesaling; gasoline; metals, minerals, and ores wholesaling; and 
business loans (partial) outweighed declines in the indexes for finfish and shellfish, legal services, 
and paper and plastics products wholesaling. (See table 6.) For the 12 months ended in May, prices 
for stage 4 intermediate demand climbed 3.9 percent, the largest 12-month advance since a 4.1-
percent rise in November 2011.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand advanced 1.3 percent in 
May, the largest rise since climbing 1.3 percent in May 2015. In May 2018, the index for total goods 
inputs to stage 3 intermediate demand increased 2.3 percent, and prices for total services inputs 
moved up 0.3 percent. Advances in the indexes for gasoline, slaughter hogs, raw milk, steel mill 
products, diesel fuel, and chemicals and allied products wholesaling outweighed declines in the 
indexes for slaughter cattle, ungraded chicken eggs, and paper and plastics products wholesaling. For 
the 12 months ended in May, prices for stage 3 intermediate demand moved up 5.3 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 1.2 percent in 
May, the largest rise since a 1.4-percent advance in April 2017. In May, prices for total goods inputs 
to stage 2 intermediate demand jumped 3.2 percent. In contrast, the index for total services inputs fell 
0.2 percent. Higher prices for crude petroleum, gas fuels, steel mill products, paperboard, temporary 
help services, and nonferrous mill shapes outweighed declines in the indexes for co-employment 
staffing services; hay, hayseeds, and oilseeds; and accounting services (partial). For the 12 months 
ended in May, prices for stage 2 intermediate demand rose 5.7 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved up 1.2 percent in 
May, the largest rise since a 1.4-percent increase in December 2016. In May, the index for total 
goods inputs to stage 1 intermediate demand climbed 1.7 percent, and prices for total services inputs 
advanced 0.8 percent. Increases in the indexes for diesel fuel; chemicals and allied products 
wholesaling; gasoline; metals, minerals, and ores wholesaling; crude petroleum; and business loans 
(partial) outweighed decreases in the indexes for corrugated wastepaper, guestroom rental, and paper 
and plastics products wholesaling. For the 12 months ended in May, prices for stage 1 intermediate 
demand rose 6.9 percent, the largest 12-month advance since climbing 7.0 percent in February 2017.

Table D. Monthly percent changes in selected intermediate demand price indexes by production flow, seasonally adjusted
Month Stage 4 intermediate
demand
Stage 3 intermediate
demand
Stage 2 intermediate
demand
Stage 1 intermediate
demand
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs

2017

May

0.1 0.0 0.1 0.1 -0.1 0.2 -0.4 -1.1 0.2 0.0 -0.2 0.2

June

0.3 0.3 0.3 0.4 0.4 0.4 0.0 -0.6 0.4 0.2 0.0 0.4

July

0.0 0.0 0.0 -0.1 -0.4 0.2 0.1 0.2 0.0 0.2 0.3 0.1

Aug.

0.3 0.3 0.3 0.4 0.5 0.2 0.2 0.5 0.0 0.7 1.1 0.2

Sept.

0.2 0.3 0.2 0.4 0.7 0.2 0.6 1.3 0.2 0.6 1.0 0.2

Oct.

0.5 0.4 0.7 0.8 0.8 0.7 0.7 0.8 0.5 0.5 0.3 0.9

Nov.

0.4 0.6 0.2 1.0 1.8 0.1 1.0 1.7 0.3 0.7 1.4 -0.1

Dec.

0.1 0.1 0.1 0.3 0.3 0.3 0.6 1.3 0.1 0.5 0.9 0.0

2018

Jan.(1)

0.5 0.8 0.3 0.6 1.0 0.3 0.9 1.5 0.5 1.1 1.9 0.2

Feb.(1)

0.1 0.1 0.0 0.5 0.9 0.0 0.9 1.7 0.3 0.3 0.4 0.3

Mar.

0.5 0.5 0.7 -0.5 -1.4 0.4 -1.7 -4.0 0.2 -0.2 -0.6 0.3

Apr.

0.3 0.4 0.2 0.2 -0.2 0.5 1.0 1.8 0.3 0.5 0.4 0.5

May

0.7 0.9 0.4 1.3 2.3 0.3 1.2 3.2 -0.2 1.2 1.7 0.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2018 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for June 2018 is scheduled to be released on Wednesday, July 11, 
2018 at 8:30 a.m. (EDT).

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Last Modified Date: June 13, 2018