Economic News Release

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                           PRODUCER PRICE INDEXES - MAY 2013


The Producer Price Index for finished goods rose 0.5 percent in May, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Prices for finished goods fell 0.7 percent in 
April and 0.6 percent in March. At the earlier stages of processing, prices received by 
manufacturers of intermediate goods declined 0.1 percent in May, and the crude goods index 
advanced 2.2 percent. On an unadjusted basis, prices for finished goods moved up 1.7 percent 
for the 12 months ended May 2013. (See table A.)

Stage-of-Processing Analysis

Finished goods

In May, over sixty percent of the broad-based rise in finished goods prices is attributable to the 
index for finished energy goods, which advanced 1.3 percent. Also contributing to the increase 
in finished goods prices, the index for finished consumer foods rose 0.6 percent and prices for 
finished goods less foods and energy moved up 0.1 percent.

Finished energy:  The index for finished energy goods moved up 1.3 percent in May following 
two consecutive declines. A 1.5-percent rise in the index for gasoline accounted for forty 
percent of the May increase. Higher prices for residential natural gas and residential electric 
power also were factors in the advance in the finished energy goods index. (See table 2.)

Finished foods:  The index for finished consumer foods climbed 0.6 percent in May after 
falling 0.8 percent in the prior month. Accounting for over sixty percent of the increase, prices 
for eggs for fresh use surged 41.6 percent. A rise in the index for natural, processed, and 
imitation cheese also contributed to the advance in the finished consumer foods index.

Finished core:  In May, prices for finished goods less foods and energy moved up 0.1 percent, 
the seventh consecutive increase. Nearly two-thirds of the May advance can be traced to prices 
for light motor trucks, which rose 0.4 percent.

Intermediate goods

The Producer Price Index for intermediate materials, supplies, and components edged down 0.1 
percent in May following declines of 0.6 percent in April and 0.9 percent in March. The May 
decrease is attributable to prices for intermediate materials less foods and energy, which fell 
0.4 percent. By contrast, the index for intermediate energy goods advanced 0.5 percent, and 
prices for intermediate foods and feeds increased 1.1 percent. For the 12 months ended in May, 
the intermediate goods index declined 0.2 percent, the third consecutive 12-month decrease. 
(See table B.)

Intermediate core:  The index for intermediate materials less foods and energy moved down 
0.4 percent in May, the largest decrease since falling 0.4 percent in July 2012. Two-thirds of 
the May decline can be traced to prices for industrial chemicals, which dropped 2.3 percent. 
Lower prices for softwood lumber and steel mill products also were factors in the decrease in 
the intermediate core index. (See table 2.)

Intermediate energy:  Prices for intermediate energy goods rose 0.5 percent in May after two 
consecutive declines. Seventy percent of the advance is attributable to a 4.1-percent jump in the 
index for utility natural gas. Higher gasoline prices also contributed to the increase in the index 
for intermediate energy goods.

Intermediate foods:  The index for intermediate foods and feeds moved up 1.1 percent in May, 
the largest rise since a 2.5-percent advance in August 2012. Leading the May increase, prices 
for soybean cake and meal surged 19.9 percent.

Crude goods

The Producer Price Index for crude materials for further processing advanced 2.2 percent in 
May. For the 3 months ended in May, crude goods prices moved down 0.8 percent subsequent 
to a 1.9-percent advance for the 3 months ended in February. The monthly increase in May was 
led by the index for crude energy materials, which rose 5.0 percent. Prices for crude foodstuffs 
and feedstuffs moved up 2.1 percent. By contrast, the index for crude nonfood materials less 
energy declined 2.3 percent. (See table B.)

Crude energy:  The index for crude energy materials moved up 5.0 percent in May. From 
February to May, prices for crude energy materials decreased 0.4 percent compared with a 7.4-
percent rise from November to February. In May, nearly sixty percent of the monthly broad-
based advance is attributable to the crude petroleum index, which rose 5.5 percent. Increases of 
6.9 percent for natural gas prices and 1.0 percent for the coal index also contributed to the 
higher crude energy prices. (See table 2.)

Crude foods:  The index for crude foodstuffs and feedstuffs increased 2.1 percent in May. For 
the 3 months ended in May, crude foods prices rose 1.3 percent after falling 2.0 percent in the 
previous 3-month period. Accounting for half of the monthly advance in May, grain prices 
jumped 5.7 percent. An increase in the index for soybeans also was a factor in higher crude 
foods prices.

Crude core:  The index for crude nonfood materials less energy fell 2.3 percent in May. From 
February to May, crude core prices dropped 4.1 percent compared with a 0.5-percent decline 
for the 3 months ended in February. Over sixty percent of the monthly decrease in May is 
attributable to the index for carbon steel scrap, which fell 6.3 percent. 

Services Analysis

Trade industries:  The Producer Price Index for the net output of total trade industries moved 
down 0.9 percent in May, the largest decrease since falling 0.9 percent in October 2011. (Trade 
indexes measure changes in margins received by wholesalers and retailers.) Over half of the 
May decline can be traced to a 0.9-percent drop in margins received by wholesale trade 
industries. Lower margins received by gasoline stations and clothing stores also contributed to 
the decrease in the total trade industries index.

Transportation and warehousing industries:  The Producer Price Index for the net output of 
transportation and warehousing industries fell 0.6 percent in May, the largest decline since a 
0.7-percent drop in September 2012. In May, the index for scheduled passenger air 
transportation accounted for over half of the decrease, moving down 1.5 percent. Lower prices 
received by the industry groups for truck transportation and for couriers and messengers also 
were factors in the decline in the transportation and warehousing industries index.

Services less trade, transportation, and warehousing:  The Producer Price Index for the net 
output of services less trade, transportation, and warehousing industries edged up 0.1 percent in 
May following a 0.4-percent increase in April. In May, higher prices received by the industry 
group for security, commodity contracts, and related activities and by non-casino hotels and 
motels outweighed lower prices received by the depository credit intermediation industry group 
and offices of lawyers.
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The Producer Price Index for June 2013 is scheduled to be released on Friday, July 12, 2013 
at 8:30 a.m. (EDT).