Producer Price Index Declines

The US Bureau of Labor Statistics said on July 13, 2024 that "The Producer Price Index for final demand declined 0.2 percent in May, seasonally adjusted."

The Bureau added:

"Product detail: Nearly 60 percent of the May decrease in the index for final demand goods can be traced to a 7.1-percent decline in prices for gasoline.

The indexes for diesel fuel, chicken eggs, electric power, jet fuel, and basic organic chemicals also fell.

Conversely, prices for cigarettes rose 3.3 percent.

The indexes for hay, hayseeds, and oilseeds and for residual fuels also moved higher.

Final demand services: Prices for final demand services were unchanged in May after increasing 0.6 percent in April. In May, the indexes for final demand trade services and for final demand services less trade, transportation, and warehousing rose 0.2 percent and 0.1 percent, respectively.
(Trade indexes measure changes in margins received by wholesalers and retailers.)

In contrast, prices for final demand transportation and warehousing services fell 1.4 percent.

Product detail: Within the index for final demand services in May, margins for fuels and lubricants retailing jumped 12.2 percent.

The indexes for food and alcohol retailing; outpatient care (partial); automobiles and automobile parts retailing; and apparel, footwear, and accessories retailing also advanced. Conversely, prices for airline passenger services fell 4.3 percent. The indexes for machinery and vehicle wholesaling, professional and commercial equipment wholesaling, portfolio management, and truck transportation of freight also declined. "