June 14, 2023
The seasonally adjusted Producer Price Index (PPI) for final demand fell 0.3% in May 2023, according to the US Bureau of Labor Statistics (BLS). This decline comes after a gain of 0.2% in April and a decline of 0.4% in March. The final demand index increased 1.1% for the year ended May 2023 on an unadjusted basis; however, the final demand index experienced a monthly decline, which is attributable to the 1.6% decline in final demand goods prices and the final demand services index increased by 0.2% in May.
Prices for final demand less foods, energy, and trade services remained flat in May, following a mere increase of 0.1% in April while the index for final demand less foods, energy, and trade services rose 2.8% for the year ended May 2023.
Final demand services
In May, the final demand services index increased by 0.2% after increasing by 0.3% in April. The margins for final demand trade services saw the biggest gain in May, up 1.0%. Prices for final demand services less trade, transportation, and warehousing saw a slight increase of 0.1%. In contrast, the index for final demand transportation and warehousing services saw a 1.4% decline.
Final demand goods
The cost of final demand goods declined by 1.6% in May, representing the biggest fall since the 1.6% decline in July 2022. The final demand energy index, which fell 6.8%, is primarily responsible for most of May’s dip. Final demand foods saw a 1.3% decline in prices. On the other hand, the index for final demand goods less foods and energy rose by 0.1%.
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