Producer Price Index up 1.4%

The Producer Price Index for Finished Goods increased 1.4 percent in May, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.

This rise followed a 0.2-percent advance in April and a 1.1-percent increase in March. At the earlier stages of processing, prices received by producers of intermediate goods rose 2.9 percent following a 0.9-percent advance a month earlier, and the crude goods index increased 6.7 percent after climbing 3.2 percent in April.

In May, the index for finished energy goods turned up 4.9 percent after falling 0.2 percent a month earlier. Prices for finished consumer foods increased 0.8 percent following no change in April. By contrast, partially offsetting the acceleration in the finished goods index, the rise in the index for finished goods minus foods and energy slowed to 0.2 percent from 0.4 percent in the previous month.

The index for finished energy goods turned up 4.9 percent in May after decreasing 0.2 percent in the preceding month. The index for gasoline rose 9.3 percent following a 4.6-percent decrease in April. Prices for diesel fuel also turned up after declining in the prior month. The indexes for home heating oil, liquefied petroleum gas, and kerosene rose more than they had in April. Conversely, partially offsetting the upturn in finished energy goods prices, the advance in the index for residential electric power slowed to 0.6 percent in May from 1.2 percent a month earlier. Prices for residential natural gas also rose less than in April. The index for lubricating and similar oils was unchanged in May after increasing in the preceding month.