URGENT: US PPI declines by 0.2% in May

US Producer Price Index (PPI) for final demand decreased by 0.2 per cent in May 2024, adjusted seasonally.

Final demand prices rose by 0.5 per cent in April and slightly dropped by 0.1 per cent in March. Moreover, the index for final demand increased by 2.2 per cent over the 12 months ending in May.

The decline in May’s final demand prices is mainly attributed to a 0.8 per cent decrease in the final demand goods index, while prices for final demand services remained unchanged.

Final demand prices excluding food, energy, and trade services were steady in May, following a 0.5 per cent rise in April. Over the 12 months ending in May, this index increased by 3.2 per cent.

Final Demand Goods: Prices dropped by 0.8 per cent in May, the largest decline since October 2023.

Energy prices fell by 4.8 per cent, while food prices edged down by 0.1 per cent. However, prices for goods excluding food and energy rose by 0.3 per cent.

Final Demand Services: Prices remained unchanged in May, after a 0.6 per cent increase in April.

Trade service prices and services excluding trade, transport, and warehousing rose by 0.2 per cent and 0.1 per cent, respectively. Conversely, transport and warehousing services fell by 1.4 per cent.

Detailed Product Information: Gasoline prices contributed significantly to the decrease in final demand goods, dropping by 7.1 per cent in May. Conversely, cigarette prices rose by 3.3 per cent.

In services, fuel and lubricants retailing saw a notable increase of 12.2 per cent, while airline passenger services fell by 4.3 per cent.

Attribution: US Bureau of Labor Statistics report.