May 1995 Producer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Producer Price Index for Finished Goods was unchanged in May, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This followed a 0.5-percent increase in April and no change in March. Prices received by domestic producers of intermediate goods inched up 0.2 percent after moving up 0.7 percent in the previous month. The Crude Goods Price Index turned down 0.8 percent after increasing 2.1 percent in April. (See table A.)

Among finished goods in May, declines for foods (-0.6 percent) and energy goods (-0.2 percent) were offset by increases for finished goods less foods and energy (0.3 percent). Prices for capital goods edged up 0.2 percent, partly reflecting higher prices for heavy motor trucks. In addition, prices also increased from April to May for consumer nondurables less foods, such as tobacco products. However, prices for consumer durables were virtually unchanged.

reported because indexes for January 1995 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision four months after original publication.

Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.3 percent in May to 128.0 (1982 =100). From May 1994 to May 1995, the Finished Goods Price Index rose 2.2 percent. During this same period, consumer food prices increased 1.0 percent, prices for finished energy goods advanced 5.5 percent, and prices for finished goods other than foods and energy were up 2.0 percent. Prices received by domestic producers of intermediate goods increased 6.9 percent during the 12 months ended in May 1995, and crude material prices moved up 0.5 percent over the same period.

Finished goods

Prices for finished consumer foods declined 0.6 percent in May, after moving down 0.2 percent in both April and March. In May, the steeper price decline was led by a 14.1 percent downturn in prices for fresh and dry vegetables; this index had climbed 17.8 percent in April. Prices also turned down markedly after rising in the previous month for finfish and shellfish, eggs for fresh use, and roasted coffee. Prices fell more than in the previous month for processed young chickens, dairy products, and for shortening and cooking oils. By contrast, price declines for beef and veal slowed from 7.6 percent in April to 1.1 percent in May. Price declines also slowed for pork. Prices for fresh fruits and melons turned up almost 30 percent in May after inching down 0.3 percent in April. Prices also turned up after falling a month earlier for processed fruits and vegetables, processed turkeys, soft drinks, pasta, and milled rice.

1995 Jan. r0.4 r1.3 r1.2 r5.4 0 r-1.4 r3.0 r-1.6 Feb. r0.1 r0.6 r0.8 5.7 1.2 r2.8 r1.2 0.9 Mar. 0.3 0.1 0.4 5.9 -2.4 -1.6 0.5 -1.7 Apr. -1.1 1.5 0.7 6.7 -0.9 6.2 1.2 -0.2 May -1.0 0.6 0.2 6.9 -3.0 1.4 -0.3 0.5 r=revised. Some percent changes shown here and elsewhere in this release may differ from those previously reported because indexes for January 1995 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision four months after original publication.

The Producer Price Index for finished energy goods moved down 0.2 percent in May, following a 2.3 percent advance in April. Increases for gasoline slowed from 7.7 percent in April to 2.0 percent in May. Prices for residential electric power declined 0.8 percent after showing no change in April. Prices for residential natural gas fell more in May (-2.1 percent) than a month earlier (-0.3 percent). By contrast, prices for home heating oil increased 9.3 percent in May following a 0.5 percent rise in the previous month.

The index for consumer goods other than foods and energy moved up 0.4 percent in May, after increasing 0.3 percent in April. The largest price increases were for tobacco products (2.2 percent), sanitary papers (2.0 percent), and newspaper circulation (1.5 percent). Increases were also noted for floor coverings, alcoholic beverages, and girls' apparel. These increases slightly offset a 0.6 percent decline for tires and tubes and a 0.3 percent decrease for passenger cars, as well as much smaller declines for a variety of other consumer goods.

In May, the capital equipment index increased 0.2 percent after moving up 0.3 percent in April. Heavy motor truck prices advanced 1.1 percent in May. Prices also increased for civilian aircraft, metal cutting machine tools, truck trailers, and for pumps and compressors. By contrast, prices declined 2.4 percent for electronic computers. Prices for light trucks were unchanged after falling 1.0 percent in April.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components increased 0.2 percent, seasonally adjusted, in May after rising 0.7 percent in April. With food and energy prices excluded, this index also rose 0.2 percent, the smallest increase in 13 months. Prices for nondurable manufacturing materials and energy goods rose less than in April. The construction index was unchanged after increasing a month earlier, and durable manufacturing material prices turned down after rising in the previous month. In contrast, the containers index rose more than in April, and prices for foods and feeds fell slightly less than in the previous month. (See table B.)

The increase in the index for nondurable manufacturing materials slowed to 0.6 percent in May from 2.5 percent a month earlier. The paper index rose 1.0 percent after increasing 4.3 percent in the previous month. Prices for miscellaneous basic organic chemicals, plastic resins and materials, and paperboard also rose less than in April. Indexes for basic inorganic chemicals, synthetic fibers, and woodpulp turned down after rising a month ago. The rise in the index for primary basic organic chemicals, however, accelerated to 2.9 percent from 1.5 percent in April.

The index for intermediate energy goods increased 0.6 percent after rising 1.5 percent a month earlier. The rise in the gasoline index slowed to 2.0 percent from 7.7 percent in the previous month. Prices for jet fuels also rose less than in April. The index for liquid asphalt turned down after rising sharply a month earlier, and utility natural gas prices fell more than in April. By contrast, the index for industrial electric power turned up 1.3 percent after falling 0.4 percent in the previous month. Prices for commercial electric power also rose after declining a month earlier.

The index for construction materials remained unchanged in May after rising in each of the last 12 months. The index for fabricated structural metal products turned down 0.1 percent after rising 0.7 percent in April. Prices for gypsum products, nonferrous wire and cable, and cement also turned down after increasing a month earlier. Indexes for concrete products and for asphalt felts and coatings rose less than in the previous month. Conversely, the index for plywood turned up 1.0 percent after falling 0.5 percent a month ago. Prices for millwork and for plumbing fixtures and brass fittings also rose after declining a month earlier.

The Producer Price Index for durable manufacturing materials decreased 0.2 percent after rising the same amount in the previous month. The May decline was the first for this index since April 1994. The index for copper and brass mill shapes fell 4.9 percent after declining 0.5 percent a month earlier. Prices for aluminum and copper also fell more than in the previous month. The index for cement turned down after rising a month earlier, and flat glass prices rose less than in April. By contrast, the rise in the index for hot rolled steel sheet and strip accelerated to 0.6 percent from 0.1 percent a month earlier. Prices for cold rolled steel sheet and strip and plywood turned up after falling in the previous month.

The index for containers rose 1.4 percent in May after increasing 0.5 percent a month earlier. This acceleration was mainly the result of the paper boxes and containers index, which rose 2.4 percent after increasing 1.1 percent in April.

The index for intermediate foods and feeds fell 1.0 percent, slightly less than its decline in the prior month. Price decreases for prepared animal feeds, crude vegetable oils, natural and processed cheese, and bulk liquid milk products outweighed advances for flour, confectionery materials, refined sugar, liquid soft drink bases, and butter.

Crude goods

In May, the Producer Price Index for Crude Materials for Further Processing fell 0.8 percent, seasonally adjusted, following a 2.1 percent climb last month. Prices for crude foodstuffs and feedstuffs fell much more than in April. The index for basic industrial materials turned down in May, the first decline in 12 months. Price increases for crude energy materials slowed from April to May.

Following a 6.2 percent price jump last month, the index for crude energy materials slowed to a 1.4 percent increase in May. Price increases slowed for crude petroleum. Prices for natural gas to pipelines continued to rise rapidly. Coal prices turned down 2.3 percent, after rising in each of the last 2 months.

The index for crude foodstuffs and feedstuffs fell 3.0 percent, the third consecutive monthly decline. The May decrease resulted from lower prices for fresh and dried vegetables, soybeans, and unprocessed finfish, all of which rose in April. In addition, prices declined more in May than in April for both slaughter broilers and slaughter cattle. The index for slaughter hogs declined for the third straight month, though price decreases slowed to 4.0 percent in May from 7.8 percent in April. The index for corn rose 1.6 percent, compared with a sharp 5.3 percent gain in the preceding month. By contrast, prices for fresh fruits and melons turned up after 4 months of price decreases. Wheat price increases accelerated to 6.3 percent from 3.5 percent in April.

After rising 1.2 percent in the preceding month, the index for crude nonfood materials less energy turned down 0.3 percent in May. Softwood logs, bolts, and timber, copper base scrap, and phosphates registered price declines after moving up in April. Prices for raw cotton moved down 8.4 percent, following a 4.2 percent drop in April, and price increases for wastepaper slowed to 6.9 percent from 9.3 percent in April. However, prices turned up for construction sand and gravel and cattle hides after April price declines, while price decreases for aluminum base scrap slowed.

Net output price indexes for mining, manufacturing, and other industries

Mining. The Producer Price Index for the net output of total domestic mining industries increased 1.1 percent in May after increasing 3.7 percent in April. (Net output price indexes are not seasonally adjusted.) Price increases for the oil and gas extraction industry group index slowed from 4.5 percent in the previous month to 2.6 percent in May. The metal mining industry group index turned down 5.6 percent after increasing 3.1 percent in April. Prices for the bituminous coal and lignite mining industry group also turned down after rising a month earlier. Price declines slowed somewhat for the industry group for anthracite mining. The nonmetallic mineral products industry group showed little or no change for the third consecutive month.

Manufacturing. The Producer Price Index for total domestic manufacturing industries moved up 0.4 percent in May, after rising 0.6 percent in April. Prices for tobacco manufactures rose 2.4 percent after inching up 0.1 percent in the previous month. Price increases for the petroleum refining industry group slowed from 8.5 percent in April to 4.7 percent in May. Price increases also slowed for the industry groups for paper mill products, chemicals and allied products, rubber and plastic products, nonmetallic mineral products, and for printing and publishing. Prices continued to rise moderately for furniture and fixtures, while prices for the lumber and wood products industry group fell moderately for the second consecutive month.

Other. Among other industries, prices for waste paper collection increased over 7 percent for the second consecutive month. Prices turned up after falling a month earlier for scheduled air transportation, travel agencies, and electric power utilities. Prices rose more rapidly in May than in April for radio broadcasting, airports and airport services, deep sea foreign transportation of freight, and for refrigerated warehousing and storage.

By contrast, prices turned down after rising a month earlier for freight transportation arrangement, metal scrap collection, hotels and motels, building cleaning and maintenance services, psychiatric hospitals, and for truck rental and leasing. Price increases slowed for deep sea domestic transportation of freight, tugging and towing services, and cable and other pay television services. Prices fell more in May than in April for natural gas utilities, passenger car rental, and medical laboratories.

Obtaining Producer Price Index Information Via the Internet

Producer Price Indexes and news releases are available on the Internet. Internet users can access the Bureau's LABSTAT public database by using Anonymous FTP (File Transfer Protocol). The login address is "stats.bls.gov," and the login is "anonymous." Please give your Internet address as the password. To download news releases, use the pub/news.release/ppi.txt directory. For commodity price indexes, use the pub/time.series/wp directory. For industry price indexes, use the pub/time.series/pc directory. A four-page PPI Internet guide is available to assist users. For a copy of the guide, contact the Section of Index Analysis and Public Information at 202-606-7705.

Internet users with access to World Wide Web browsers can link to the introductory version of our BLS home page as an alternative to Anonymous FTP. The address is "http://stats.bls.gov.'' Click on the BLS Data (Labstat) icon to view the menu for news releases or data series. The Bureau's Web service is still in development. A more user-friendly version of the BLS home page is scheduled for release in the fall of 1995, and full implementation is planned for early 1996.

Information in this news release will be made available to sensory impaired individuals upon request. Voice phone: 202-606-7828; TDD phone: 202-606- 5897; TDD Message Referral phone: 1-800-326-2577.