General

The Producer Price Index for final demand (also known as wholesale prices) increased 0.1% over the month in May, after declining 0.2% in April. Over the year, producer prices moved up 2.6%. Meanwhile, prices for final demand excluding foods, energy and trade services edged up 0.1% over the month in May, after falling 0.1% in April. On the other hand, prices for these goods advanced 2.7% from May 2024.

In May, prices for final demand services inched up 0.1%, following a 0.4% decline in April, while prices for final demand goods rose 0.2%. The advance in final demand services is attributed to 0.4% growth in trade services, which measures margins received by wholesalers and retailers. Additionally, margins for machinery and vehicle wholesaling jumped 2.9%. Meanwhile, 80% of the increase in final demand goods arose from a 0.2% gain in final demand for goods less foods and energy. Within the index, prices for tobacco products climbed 0.9%.

Processed goods for intermediate demand rose 0.1% in May, following a 0.3% increase in April. The rise can be attributed to a 0.4% gain in the index for processed materials less foods and energy. Meanwhile, the index for processed energy goods fell 1.2%. Over the year, the index grew 1.9%, the largest 12-month increase since the 2.1% rise in February 2023.

Meanwhile, prices for unprocessed goods for intermediate demand fell 1.6% in May, marking the third decline in a row. More than 75% of the May decrease can be traced to a 3.5% drop in the prices for unprocessed energy materials. Additionally, prices for unprocessed nonfood materials less energy slipped 1.4%. Over the year, prices for unprocessed goods for intermediate demand declined 1.0%, the first 12-month decrease since dropping 2.2% in November 2024.