Producer Price Index for Final Demand Increases 0.8% in May

The Bureau of Labor Statistics (BLS) reported today (6-15-21) that the Producer Price Index for final demand, seasonally adjusted, increased 0.8% percent in May. Final demand prices rose 0.6% in April and 1.0% in March and 0.5% in February. On an unadjusted basis, the final demand index moved up 6.6% for the 12 months ended in May — the largest advance since 12-month data were first calculated in November 2010. About 60% of the May advance in the final demand index can be traced to a 1.5% increase in prices for final demand goods. The index for final demand goods also moved up 0.6%. The index for final demand less foods, energy, and trade services rose 0.7% in May, the same as in April, following an increase of 0.6% in March. For the 12 months ended in May, prices for final demand less foods, energy, and trade services moved up 5.3% — the largest advance since 12-month data were first calculated in August 2014.