PPI drops in May 2005

The Producer Price Index for Finished Goods fell 0.6 percent in May, seasonally adjusted. This decline followed a 0.6-percent increase in April and a 0.7-percent advance in March.

[Chart data—TXT]

The index for finished energy goods fell 3.5 percent in May, after rising 2.1 percent in April. Accounting for nearly half of this downturn, gasoline prices dropped 9.9 percent in May, following a 2.6-percent increase a month earlier.

Prices for finished consumer foods declined 0.3 percent in May, compared with a 0.1-percent rise in April. The index for fresh and dry vegetables dropped 15.0 percent, following a 1.1-percent increase in the preceding month.

The index for finished consumer goods other than foods and energy inched up 0.1 percent in May, following a 0.2-percent advance in April.

From May 2004 to May 2005, prices for finished goods increased 3.5 percent, as shown in the chart. Over the same period, the index for finished energy goods climbed 10.2 percent, the index for finished consumer foods advanced 0.8 percent, and prices for finished goods other than foods and energy rose 2.6 percent.

These data are from the BLS Producer Price Index program. For more information, see "Producer Price Indexes -- May 2005" (PDF) (TXT), news release USDL 05-1053. All producer price indexes are routinely subject to revision once, 4 months after original publication, to reflect the availability of late reports and corrections by respondents.