June 11, 2026
According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) for final demand increased 1.1% in May, seasonally adjusted. This follows a 1.1% rise in April and a 0.7% increase in March. On an unadjusted basis, the index for final demand rose 6.5% over the 12 months ended May, the largest 12-month increase since November 2022.
Nearly 80% of May’s overall gain was driven by a 2.8% increase in final demand goods, while final demand services prices rose 0.3%.
Excluding foods, energy, and trade services, the PPI for final demand increased 0.8%, the largest monthly advance since March 2022. Over the past year, this measure rose 5.1%, the biggest 12-month gain since October 2022.
Final demand goods
Prices for final demand goods increased 2.8%, the largest rise since the series began in 2009, following gains in prior months. About 80% of the increase was driven by a 10.7% surge in energy prices. Goods excluding food and energy rose 0.8%, while food prices increased 0.6%.
A major contributor was a 23.4% jump in gasoline prices, which accounted for over half of the overall goods increase. Prices also rose for diesel fuel, jet fuel, plastic resins, industrial chemicals, and natural gas liquids. Offsetting these gains, prices for pork fell 10.1%, while residential electric power and sanitary paper products also declined.
Final demand services
The index for final demand services rose 0.3%, following a 0.7% increase in April. The advance was led by a 0.7% increase in services excluding trade, transportation, and warehousing, along with a 2.6% rise in transportation and warehousing services. In contrast, trade services margins declined 1.1%.
A 4.8% increase in portfolio management prices accounted for over 40% of the overall services gain. Additional contributors included increases in truck transportation of freight; securities brokerage and investment services; and chemicals and food wholesaling. Declines were recorded in machinery and equipment wholesaling margins, as well as in fuels and lubricants retailing and residential real estate loan services.
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