Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 22-1174
8:30 a.m. (ET), Tuesday, June 14, 2022

Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov   


                           PRODUCER PRICE INDEXES - MAY 2022


The Producer Price Index for final demand increased 0.8 percent in May, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. This rise followed advances of 0.4 percent in 
April and 1.6 percent in March. (See table A.) On an unadjusted basis, final demand prices 
moved up 10.8 percent for the 12 months ended in May.

In May, nearly two-thirds of the rise in the index for final demand was due to a 1.4-percent 
advance in prices for final demand goods. The index for final demand services increased 0.4 
percent.

Prices for final demand less foods, energy, and trade services moved up 0.5 percent in May after 
increasing 0.4 percent in April. For the 12 months ended in May, the index for final demand less 
foods, energy, and trade services rose 6.8 percent.

Final Demand

Final demand goods: The index for final demand goods moved up 1.4 percent in May, the fifth 
consecutive rise. Over 70 percent of the increase in May can be traced to a 5.0-percent advance in 
prices for final demand energy. The index for final demand goods less foods and energy moved up 
0.7 percent, while prices for final demand foods were unchanged.

Product detail: Forty percent of the May increase in prices for final demand goods can be attributed 
to an 8.4-percent advance in the index for gasoline. Prices for jet fuel, residential natural gas, steel 
mill products, diesel fuel, and processed young chickens also moved higher. Conversely, the index 
for beef and veal fell 9.5 percent. Prices for iron and steel scrap and for commercial electric power 
also decreased. (See table 2.)

Final demand services: The index for final demand services moved up 0.4 percent in May following 
a 0.2-percent decrease in April. Over half of the broad-based advance can be traced to a 2.9-percent 
rise in prices for final demand transportation and warehousing services. The indexes for final demand 
trade services and for final demand services less trade, transportation, and warehousing also moved 
higher, 0.4 percent and 0.1 percent, respectively. (Trade indexes measure changes in margins 
received by wholesalers and retailers.)

Product detail: Nearly 30 percent of the May increase in the index for final demand services can be 
attributed to prices for truck transportation of freight, which rose 2.9 percent. The indexes for 
services related to securities brokerage and dealing (partial), machinery and equipment wholesaling, 
chemicals and allied products wholesaling, automobiles and automobile parts retailing, and 
transportation of passengers (partial) also advanced. In contrast, margins for fuels and lubricants 
retailing declined 21.7 percent. The indexes for portfolio management and for guestroom rental also 
moved lower.

Intermediate Demand by Commodity Type

Within intermediate demand in May, prices for processed goods advanced 2.3 percent, the index for 
unprocessed goods increased 6.3 percent, and prices for services rose 0.6 percent. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand increased 2.3 percent in May, the fifth consecutive advance. Over half of the broad-based 
increase in May can be traced to a 1.7-percent rise in prices for processed materials less foods and 
energy. The indexes for processed energy goods and for processed foods and feeds also moved 
higher, 4.6 percent and 0.9 percent, respectively. For the 12 months ended in May, prices for 
processed goods for intermediate demand jumped 21.6 percent.

Product detail: One-quarter of the May increase in the index for processed goods for intermediate 
demand can be attributed to a 10.7-percent rise in prices for steel mill products. The indexes for 
utility natural gas, gasoline, diesel fuel, jet fuel, and ethanol also advanced. Conversely, prices for 
commercial electric power declined 1.9 percent. The indexes for primary nonferrous metals and for 
beef and veal also moved lower.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand climbed 6.3 percent in May, the fifth consecutive advance. Leading the May increase, prices 
for unprocessed energy materials rose 16.3 percent. The index for unprocessed foodstuffs and 
feedstuffs also moved higher, advancing 0.9 percent. In contrast, prices for unprocessed nonfood 
materials less energy fell 4.2 percent. For the 12 months ended in May, the index for unprocessed 
goods for intermediate demand surged 48.5 percent.

Product detail: A major factor in the May increase in prices for unprocessed goods for intermediate 
demand was the index for natural gas, which jumped 39.7 percent. Prices for raw milk, coal, 
slaughter steers and heifers, hay and hayseeds, and raw cotton also rose. Conversely, the index for 
iron and steel scrap dropped 11.8 percent. Prices for crude petroleum and for slaughter hogs also 
decreased. 

Services for intermediate demand: The index for services for intermediate demand moved up 0.6 
percent in May, the seventh consecutive increase. Over half of the broad-based advance in May is 
attributable to a 0.5-percent rise in prices for services less trade, transportation, and warehousing for 
intermediate demand. The indexes for trade services for intermediate demand and for transportation 
and warehousing services for intermediate demand also moved higher, 0.6 percent and 1.0 percent, 
respectively. For the 12 months ended in May, prices for services for intermediate demand advanced 
7.7 percent. 

Product detail: Over one-third of the May rise in the index for services for intermediate demand can 
be traced to a 39.1-percent jump in prices for services related to securities brokerage and dealing 
(partial). The indexes for loan services (partial); machinery and equipment parts and supplies 
wholesaling; chemicals and allied products wholesaling; truck transportation of freight; and metals, 
minerals, and ores wholesaling also increased. In contrast, margins for fuels and lubricants retailing 
fell 21.7 percent. Prices for arrangement of freight and cargo transportation and for portfolio 
management also declined.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand climbed 1.0 percent in May 
following a 0.8-percent rise in April. In May, the index for total goods inputs to stage 4 intermediate 
demand increased 1.3 percent, and prices for total services inputs moved up 0.7 percent. (See table 
D.) Advances in the indexes for steel mill products, services related to securities brokerage and 
dealing (partial), machinery and equipment parts and supplies wholesaling, gasoline, utility natural 
gas, and chemicals and allied products wholesaling outweighed decreases in prices for portfolio 
management; securities brokerage, dealing, and investment advice; and beef and veal. For the 12 
months ended in May, the index for stage 4 intermediate demand jumped 11.5 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand moved up 1.8 percent in May 
after rising 2.5 percent in April. In May, the index for total goods inputs to stage 3 intermediate 
demand climbed 2.9 percent, and prices for total services inputs advanced 0.6 percent. Increases in 
the indexes for steel mill products; jet fuel; raw milk; diesel fuel; asphalt; and metals, minerals, and 
ores wholesaling outweighed falling prices for slaughter hogs, arrangement of freight and cargo 
transportation, and slaughter cows and bulls. For the 12 months ended in May, the index for stage 3 
intermediate demand jumped 19.3 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand rose 3.9 percent in May, 
the fifth straight advance. In May, prices for total goods inputs to stage 2 intermediate demand 
jumped 7.5 percent, while the index for total services inputs was unchanged. Increases in prices for 
gas fuels, ethanol, loan services (partial), steel mill products, coal, and water transportation of freight 
outweighed declines in the indexes for fuels and lubricants retailing, iron and steel scrap, and crude 
petroleum. For the 12 months ended in May, prices for stage 2 intermediate demand surged 25.6 
percent, the largest rise since a 26.6-percent advance for the 12 months ended November 2021.

Stage 1 intermediate demand: The index for stage 1 intermediate demand moved up 1.6 percent in 
May, the same as in April. In May, prices for total goods inputs to stage 1 intermediate demand 
increased 2.3 percent, and the index for total services inputs rose 0.9 percent. Higher prices for steel 
mill products, utility natural gas, services related to securities brokerage and dealing (partial), diesel 
fuel, ethanol, and gasoline outweighed decreases in the indexes for iron and steel scrap; hardware, 
building materials, and supplies retailing; and guestroom rental. For the 12 months ended in May, 
prices for stage 1 intermediate demand climbed 16.1 percent.

________________
The Producer Price Index for June 2022 is scheduled to be released on Thursday, July 14, 2022, 
at 8:30 a.m. (ET).