Updated: 11-Jun-26 09:31 ET
| May PPI |
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| Updated: 11-Jun-26 09:31 ET |
Highlights
- The Producer Price Index for final demand increased 1.1% month-over-month in May (Briefing.com consensus: 0.7%) following a downwardly revised 1.1% increase (from 1.4%) in April. Nearly 80% of the increase in final demand prices was due to a 2.8% increase in the index for final demand goods.
- Excluding food and energy, the index for final demand jumped 0.4% month-over-month (Briefing.com consensus: 0.4%) following a downwardly revised 0.7% increase (from 1.0%) in April.
- On a year-over-year basis, the index for final demand was up 6.5%, while the index for final demand, excluding food and energy, was up 4.9%.
Key Factors
- The index for final demand goods increased 2.8%, its largest increase since December 2009, when it was first calculated. 80% of that advance was attributed to a 10.7% increase in prices for final demand energy.
- The index for final demand services was up 0.3% (and up 4.9% year-over-year) following a 0.7% increase in April.
- The index for processed goods for intermediate demand jumped 3.5%, marking the seventh straight advance. Over 60% of the increase was owed to a 10.4% increase in prices for processed energy goods.
- The index for unprocessed goods for intermediate demand rose 4.9%, also the seventh straight increase, with half of the advance due to a 6.9% increase in the index for unprocessed energy materials.
Big Picture
- The key takeaway from the report is that producers aren't finding much price relief; hence, consumers won't find much price relief in the near-term either, unless producers choose to absorb the higher costs.
| Category | MAY | APR | MAR | FEB | JAN |
| Final Demand | 1.1% | 1.1% | 0.7% | 0.5% | 0.6% |
| Core (excluding ...) | |||||
| Food and Energy | 0.4% | 0.7% | 0.3% | 0.3% | 0.8% |
| Food, Energy, and Trade | 0.8% | 0.5% | 0.2% | 0.5% | 0.5% |
| Final Demand Goods | |||||
| Total | 2.8% | 1.9% | 2.0% | 1.0% | -0.1% |
| Energy | 10.7% | 7.5% | 10.4% | 2.1% | -1.7% |
| Finished Goods | 2.6% | 1.6% | 1.7% | 0.9% | -0.6% |
| Final Demand Services | |||||
| Total | 0.3% | 0.7% | 0.2% | 0.3% | 0.9% |
| Trade | -1.1% | 1.3% | 0.4% | -0.3% | 2.0% |
| Intermediate Demand | |||||
| Processed | 3.5% | 2.7% | 2.9% | 1.5% | 0.1% |
| Unprocessed | 4.9% | 1.5% | -0.3% | 5.9% | 4.3% |
| Services | 0.5% | 0.9% | 0.0% | 0.3% | 0.6% |