Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 17-0815 
8:30 a.m. (EDT), Tuesday, June 13, 2017

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                                PRODUCER PRICE INDEXES - MAY 2017


The Producer Price Index for final demand was unchanged in May, seasonally adjusted, the U.S. 
Bureau of Labor Statistics reported today. Final demand prices rose 0.5 percent in April and 
edged down 0.1 percent in March. (See table A.) On an unadjusted basis, the final demand index 
increased 2.4 percent for the 12 months ended in May.

Within final demand in May, a 0.3-percent increase in the index for final demand services offset 
a 0.5-percent decline in prices for final demand goods.

Prices for final demand less foods, energy, and trade services fell 0.1 percent in May, the first 
decline since a similar 0.1-percent decrease in May 2016. For the 12 months ended May 2017, 
the index for final demand less foods, energy, and trade services moved up 2.1 percent.

Final Demand

Final demand services: Prices for final demand services rose 0.3 percent in May following a 0.4-
percent advance in April. The May increase can be attributed to the index for final demand trade 
services, which moved up 1.1 percent. (Trade indexes measure changes in margins received by 
wholesalers and retailers.) In contrast, prices for final demand services less trade, transportation, and 
warehousing fell 0.1 percent, and the index for final demand transportation and warehousing services 
declined 0.5 percent.  

Product detail: About half of the May increase in the index for final demand services can be traced 
to margins for fuels and lubricants retailing, which rose 16.1 percent. The indexes for apparel, 
footwear, and accessories retailing; machinery and equipment wholesaling; residential real estate 
loans (partial); automobiles and automobile parts retailing; and food wholesaling also moved higher. 
Conversely, prices for guestroom rental decreased 5.2 percent. The indexes for airline passenger 
services and food retailing also moved lower. (See table 4.)

Final demand goods: Prices for final demand goods moved down 0.5 percent in May, the largest 
decrease since a 0.6-percent drop in February 2016. Most of the May decline can be attributed to the 
index for final demand energy, which fell 3.0 percent. Prices for final demand foods decreased 0.2 
percent. In contrast, the index for final demand goods less foods and energy edged up 0.1 percent. 

Product detail: The May decrease in the index for final demand goods was led by an 11.2-percent 
drop in gasoline prices. The indexes for fresh and dry vegetables, jet fuel, fresh fruits and melons, 
motor vehicles, and home heating oil also fell. Conversely, the index for pharmaceutical preparations 
rose 0.6 percent. Prices for beef and veal and for electric power also increased. 

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

2016

May

0.2 -0.1 0.7 0.4 2.9 0.2 0.0 0.2 -0.5 -0.1 0.0 1.0

June

0.5 0.2 0.7 0.4 2.7 0.2 0.4 0.7 0.1 0.2 0.2 1.0

July

-0.1 0.2 -0.2 -0.7 -0.3 0.0 0.0 -0.8 0.4 0.4 0.0 1.0

Aug.

-0.2 0.1 -0.3 -1.1 -0.9 0.2 -0.2 -0.7 -0.3 0.1 0.0 1.2

Sept.

0.3 0.1 0.5 0.5 1.5 0.1 0.3 0.7 -0.7 0.2 0.6 1.3

Oct.

0.3 0.1 0.3 -0.8 2.7 0.0 0.1 0.4 0.8 0.0 1.1 1.5

Nov.

0.2 0.2 0.1 -0.6 0.2 0.3 0.3 0.2 0.4 0.2 1.3 1.8

Dec.

0.2 0.3 0.6 0.8 1.9 0.3 0.0 -0.4 1.1 0.1 1.7 1.8

2017

Jan.(1)

0.6 0.1 1.0 0.6 4.0 0.4 0.4 1.2 0.0 0.1 1.7 1.7

Feb.(1)

0.2 0.2 0.3 0.3 0.8 0.1 0.2 0.0 0.3 0.3 2.2 1.8

Mar.

-0.1 0.1 -0.1 0.9 -2.9 0.4 -0.1 -0.1 -0.2 -0.1 2.3 1.7

Apr.

0.5 0.7 0.5 0.9 0.8 0.3 0.4 -0.3 0.7 0.8 2.5 2.1

May

0.0 -0.1 -0.5 -0.2 -3.0 0.1 0.3 1.1 -0.5 -0.1 2.4 2.1

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2017 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 inched up 0.1 percent, the index for 
unprocessed goods fell 3.0 percent, and prices for services were unchanged. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand rose 0.1 percent in May, the ninth consecutive increase. Most of the advance is attributable 
to prices for processed materials less foods and energy, which climbed 0.2 percent. Additionally, the 
index for processed foods and feeds rose 0.5 percent. In contrast, prices for processed energy goods 
moved down 0.3 percent. For the 12 months ended in May, the index for processed goods for 
intermediate demand increased 4.8 percent.

Product detail: Within the index for processed goods for intermediate demand in May, prices for 
thermoplastic resins and materials rose 2.7 percent. The indexes for diesel fuel, commercial electric 
power, beef and veal, and lubricating oil base stocks also moved higher. Conversely, prices for 
gasoline fell 11.2 percent. The indexes for jet fuel, prepared animal feeds, and primary basic organic 
chemicals also declined. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand decreased 3.0 percent in May following a 3.3-percent rise in April. The decrease can be 
traced primarily to prices for unprocessed energy materials, which fell 9.3 percent. The index for 
unprocessed nonfood materials less energy moved down 0.7 percent. In contrast, prices for 
unprocessed foodstuffs and feedstuffs advanced 1.8 percent. For the 12 months ended in May, the 
index for unprocessed goods for intermediate demand climbed 7.5 percent.

Product detail: Leading the May decline in the index for unprocessed goods for intermediate 
demand, prices for crude petroleum decreased 19.6 percent. The indexes for coal, fresh and dry 
vegetables, raw milk, berries, and wastepaper also moved lower. Conversely, prices for slaughter 
steers and heifers jumped 9.1 percent. The indexes for natural gas and aluminum base scrap also 
increased.

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.)

2016

May

0.8 1.0 2.9 0.3 -4.5 2.9 -0.4 7.6 3.4 -12.8

June

0.8 1.3 3.5 0.2 -4.1 2.5 1.3 6.4 -0.2 -10.8

July

0.2 -0.4 0.6 0.1 -3.7 0.8 -2.1 5.6 0.6 -7.6

Aug.

-0.1 -1.1 -1.3 0.3 -3.0 -2.1 -2.1 -4.0 0.3 -6.5

Sept.

0.3 -0.3 1.7 0.1 -1.3 -0.6 -2.1 2.7 -2.0 -4.9

Oct.

0.3 -0.9 1.5 0.2 -0.6 -0.7 -5.9 5.8 -1.3 -4.4

Nov.

0.2 -0.3 -0.1 0.4 0.1 0.6 5.2 -5.8 2.5 1.0

Dec.

0.6 1.3 1.3 0.4 1.8 7.3 4.8 13.4 3.4 13.0

2017

Jan.(1)

1.2 0.5 5.4 0.3 4.0 3.8 2.1 6.7 3.3 17.4

Feb.(1)

0.3 0.0 0.4 0.4 5.0 0.1 1.1 -2.3 1.3 19.4

Mar.

0.1 0.6 -2.7 0.7 5.3 -4.2 0.8 -14.6 2.0 12.7

Apr.

0.5 -0.6 1.3 0.5 5.4 3.3 -2.3 14.1 -0.7 13.9

May

0.1 0.5 -0.3 0.2 4.8 -3.0 1.8 -9.3 -0.7 7.5

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2017 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 was unchanged 
in May after advancing 0.9 percent in April. In May, margins for trade services for intermediate 
demand increased 1.1 percent. In contrast, prices for services less trade, transportation, and 
warehousing for intermediate demand decreased 0.3 percent, and the index for transportation and 
warehousing services for intermediate demand inched down 0.1 percent. For the 12 months ended in 
May, prices for services for intermediate demand climbed 2.8 percent, the largest rise since moving 
up 2.9 percent for the 12 months ended December 2012.

Product detail: In May, margins for paper and plastics products wholesaling jumped 5.4 percent. The 
indexes for portfolio management; hardware, building materials, and supplies retailing; building 
materials, paint, and hardware wholesaling; and legal services also moved higher. Conversely, prices 
for services related to securities brokerage and dealing fell 4.5 percent. The indexes for deposit 
services (partial), business loans (partial), machinery and equipment parts and supplies wholesaling, 
and airline passenger services also declined. 

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.)

2016

May

-0.1 0.3 -0.1 -0.3 1.1

June

0.4 1.1 0.2 0.4 1.4

July

0.4 0.2 0.3 0.5 1.7

Aug.

-0.2 -1.6 0.0 0.2 1.3

Sept.

-0.1 -0.3 -0.7 0.1 1.8

Oct.

0.1 -0.2 0.3 0.0 2.4

Nov.

0.4 0.0 0.3 0.6 2.6

Dec.

0.2 1.1 0.7 -0.2 2.6

2017

Jan.(1)

0.4 0.2 0.1 0.5 1.7

Feb.(1)

0.4 0.4 0.4 0.4 2.0

Mar.

-0.2 0.3 0.3 -0.4 1.7

Apr.

0.9 0.7 0.4 1.0 2.6

May

0.0 1.1 -0.1 -0.3 2.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2017 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand moved up 0.2 percent in 
May following a 0.6-percent increase in April. In May, prices for total goods inputs to stage 4 
intermediate demand rose 0.3 percent, and the index for total services inputs edged up 0.1 percent. 
(See table D.) Advances in the indexes for diesel fuel, paper and plastics products wholesaling, beef 
and veal, portfolio management, commercial electric power, and unprocessed finfish outweighed 
decreases in prices for gasoline, services related to securities brokerage and dealing, and berries. (See 
table 6.) For the 12 months ended in May, the index for stage 4 intermediate demand climbed 3.0 
percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand fell 0.2 percent in May, the 
first decline since a 0.5-percent decrease in October 2016. In May, the index for total goods inputs to 
stage 3 intermediate demand moved down 0.4 percent, while prices for total services inputs were 
unchanged. Lower prices for gasoline, jet fuel, raw milk, services related to securities brokerage and 
dealing, slaughter barrows and gilts, and advertising space sales in printed materials outweighed 
increases in the indexes for slaughter steers and heifers, slaughter chickens, and paper and plastics 
products wholesaling. For the 12 months ended in May, prices for stage 3 intermediate demand rose 
4.0 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand decreased 1.0 percent in 
May after advancing 2.2 percent in April. In May, prices for total goods inputs to stage 2 
intermediate demand dropped 2.4 percent, while the index for total services inputs was unchanged. 
Falling prices for crude petroleum, services related to securities brokerage and dealing, coal, 
guestroom rental, airline passenger services, and prepared animal feeds outweighed increases in the 
indexes for thermoplastic resins and materials, natural gas, and portfolio management. For the 12 
months ended in May, prices for stage 2 intermediate demand rose 5.0 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved down 0.3 percent in 
May following a 0.9-percent increase in April. In May, the index for total services inputs to stage 1 
intermediate demand declined 0.3 percent, and prices for total goods inputs inched down 0.1 percent. 
Decreases in the indexes for guestroom rental, crude petroleum, gasoline, wastepaper, carbon steel 
scrap, and primary basic organic chemicals outweighed advances in the indexes for diesel fuel, paper 
and plastics products wholesaling, and commercial electric power. For the 12 months ended in May, 
prices for stage 1 intermediate demand increased 5.4 percent.

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

2016

May

0.2 0.4 -0.1 0.2 0.4 -0.1 1.2 3.1 0.1 0.9 2.1 -0.5

June

0.5 0.6 0.5 0.8 1.1 0.4 1.1 2.5 0.2 0.9 0.9 0.9

July

0.2 0.1 0.4 0.2 0.1 0.4 0.9 1.2 0.6 0.1 0.0 0.3

Aug.

-0.2 -0.1 -0.3 -0.6 -0.7 -0.4 -0.5 -1.1 -0.1 -0.5 -0.3 -0.7

Sept.

0.1 0.2 -0.1 -0.1 -0.1 -0.1 0.3 0.7 -0.1 0.1 0.2 -0.1

Oct.

0.1 -0.1 0.2 -0.5 -0.8 -0.1 1.0 2.2 0.2 0.0 0.2 -0.3

Nov.

0.2 0.2 0.3 1.1 1.7 0.6 -0.4 -1.5 0.4 0.8 1.0 0.5

Dec.

0.4 0.4 0.3 1.2 2.2 0.2 2.0 4.5 0.3 1.4 2.1 0.4

2017

Jan.(1)

0.6 0.8 0.5 1.1 1.8 0.3 1.3 2.5 0.4 1.3 2.1 0.4

Feb.(1)

0.4 0.3 0.5 0.5 0.7 0.4 0.0 -0.3 0.2 0.6 0.6 0.3

Mar.

-0.1 0.2 -0.2 0.1 0.3 -0.2 -1.9 -4.4 0.0 -0.1 0.3 -0.5

Apr.

0.6 0.3 0.9 0.1 -0.6 0.9 2.2 4.1 0.8 0.9 0.4 1.3

May

0.2 0.3 0.1 -0.2 -0.4 0.0 -1.0 -2.4 0.0 -0.3 -0.1 -0.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2017 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for June 2017 is scheduled to be released on Thursday, July 13, 
2017 at 8:30 a.m. (EDT).


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Last Modified Date: June 13, 2017