June 20, 2022
According to the US Bureau of Labor Statistics, the seasonally adjusted Producer Price Index for final demand gained 0.8% in May 2022. Following gains of 0.4% in May and 1.6% in March 2022. Final demand prices increased 10.8% for the 12 months ended May 2022 on an unadjusted basis.
Two-thirds of the increase in the final demand index in May can be attributed to a 1.4% increase in final demand goods prices. Notably, “ the index for final demand goods moved up 1.4% in May, the fifth
consecutive rise. Over 70% of the increase in May can be traced to a 5% advance in prices for final demand energy. The index for final demand goods less foods and energy moved up 0.7%, while prices for final demand foods were unchanged,” according to the U.S Bureau of Labor Statistics.
Following a 0.2% decrease in April 2022, prices for final demand services increased 0.4% in May 2022. Notably, in May, Over half of the broad-based advance can be traced to a 2.9% increase 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% and 0.1%, respectively.
Month over month the final demand foods index was unchanged (April 1.4%) and the index for energy rose 5.0% (April 1.6%). Prices for final demand products, excluding food, energy and trade services increased by 0.5% in May after an increase of 0.4% in April. For the 12 months ended in May, the index for final demand less foods, energy, and trade services increased 6.8% (April 6.8%).
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