May 1996 Producer Price Index

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The Producer Price Index for Finished Goods decreased 0.1 percent in May, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This followed increases of 0.4 percent in April and 0.5 percent in March. Prices received by domestic producers of intermediate goods increased 0.5 percent after moving up 0.3 percent in the previous month. The Crude Goods Price Index advanced 1.3 percent after increasing 5.3 percent in April. (See table A.)

Among finished goods in May, the index for energy goods turned down, following increases in both of the previous 2 months. The index for finished consumer foods was unchanged after moving down in April. Prices for finished goods other than foods and energy also remained unchanged in May after edging up slightly in each of the previous 3 months.

1996 Jan. 0.2 r-0.4 r2.4 -0.1 r2.2 r0.2 r2.3 Feb. r-0.1 r-0.2 r-0.6 0.1 2.0 r-0.5 r-2.2 Mar. 0.5 0.6 2.4 0.1 2.4 0.2 1.6 Apr. 0.4 -0.3 2.8 0.1 2.5 0.3 5.3 May -0.1 0 -0.6 0 2.3 0.5 1.3 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 1996 have been revised to reflect the availability of late reports and corrections by respondents.

Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.2 percent in May to 131.0 (1982=100). From May 1995 to May 1996, the Finished Goods Price Index rose 2.3 percent. During this same period, consumer food prices increased 2.6 percent, prices for finished energy goods advanced 5.0 percent, and prices for finished goods other than foods and energy were up 1.6 percent. Prices received by domestic producers of intermediate goods increased 0.7 percent during the 12 months ended in May 1996, and crude material prices moved up 12.8 percent over the same period.

Finished goods

The Producer Price Index for finished energy goods moved down 0.6 percent in May, following a 2.8-percent advance in the prior month. Gasoline prices were unchanged after rising 6.1 percent in April. The index for heating oil fell 7.3 percent after advancing 13.3 percent in the previous month. Prices also turned down after rising in April for residential natural gas and finished lubricants. The index for residential electricity increased much less than in April.

The capital equipment index decreased 0.1 percent after rising 0.2 percent in April. Prices for x-ray and electromedical equipment turned down 2.1 percent after rising 1.4 percent a month earlier. The indexes for light motor trucks and agriculture machinery also declined after rising in the previous month. Prices for commercial furniture rose less than a month earlier. By contrast, the index for civilian aircraft turned up 0.4 percent after falling 0.2 percent in the prior month. The indexes for tools, dies, jigs, and fixtures and metal forming machine tools also turned up after decreasing in the previous month. Price declines slowed for electronic computers and truck trailers. Prices for heavy motor trucks and office and store machines remained unchanged after falling a month ago. The index for metal cutting machine tools rose more in May than in the prior month.

Prices for finished consumer foods were unchanged in May, after moving down 0.3 percent a month ago. The index for dairy products turned up 2.9 percent after falling 0.8 percent a month earlier. Prices for fresh fruits and melons also rose after declining in April. Price increases accelerated for pork, processed young chickens, shortening and cooking oils, bakery products, confectionery end products, and milled rice. By contrast, the index for beef and veal turned down 2.2 percent after rising 3.3 percent a month ago. The index for eggs for fresh use declined 16.5 percent after decreasing 2.6 percent in April. Prices for fresh and dry vegetables, finfish and shellfish, and roasted coffee also fell more than the in prior month.

The index for consumer goods other than foods and energy rose 0.1 percent after showing no change in April. In May, prices for tobacco products rose 3.2 percent. The indexes for prescription drugs, cosmetics, periodicals, floor coverings, and for tires and tubes also increased. By contrast, price declines were recorded for sanitary papers, alcoholic beverages, women's apparel, and newspapers.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components increased 0.5 percent in May, seasonally adjusted, following a rise of 0.3 percent a month earlier. The index for nondurable manufacturing materials turned up after falling in April. Prices for durable manufacturing materials rose after remaining unchanged in the previous month. Indexes for both foods and feeds and construction materials rose more than a month earlier. By contrast, prices for energy goods rose less than in April. Excluding food and energy prices, the intermediate materials index rose 0.2 percent after declining in each of the last 7 months. (See table B.)

The index for nondurable manufacturing materials turned up 0.2 percent after falling 0.8 percent in April. The index for intermediate basic organic chemicals turned up 7.5 percent after falling 3.7 percent in the previous month. Prices for plastic resins and materials and leather also increased after declining a month earlier. Indexes for both miscellaneous basic organic chemicals and for inedible fats and oils rose more than in April. In addition, prices for woodpulp fell less than a month ago. The index for paper, however, fell 3.8 percent after decreasing 2.8 percent in the previous month. Prices for gray fabrics turned down after rising in the prior month.

The index for durable manufacturing materials rose 1.0 percent after remaining unchanged a month earlier. The index for copper and brass mill shapes turned up 5.7 percent after falling 2.2 percent in the previous month. Prices for cold rolled steel sheet and strip, copper, and plywood also rose after declining in April. The index for aluminum mill shapes fell less than in the previous month. By contrast, the index for flat glass turned down 2.2 percent after rising 0.5 percent a month ago. Prices for prepared paint and for hot rolled steel sheet and strip also declined after increasing in the previous month. The index for hot rolled bars, plates, and structural shapes remained unchanged after rising a month earlier.

The rise in the index for intermediate foods and feeds accelerated to 3.7 percent from 1.9 percent in April. The index for flour rose 14.9 percent following a 1.1 percent increase a month earlier. Prices for pork, fluid milk products, and prepared animal feeds also rose more than in the previous month. The index for natural and processed cheese turned up after falling a month ago, and confectionery material prices fell less than in April. Conversely, the index for beef and veal turned down 2.2 percent in April after rising 3.3 percent in the previous month, and the index for refined sugar also declined after increasing in April.

The index for construction materials rose 0.7 percent in May after increasing 0.2 percent in the previous month. The rise in the index for softwood lumber accelerated to 8.1 percent from 1.7 percent in April. Prices for millwork, nonferrous wire and cable, and concrete products also rose more than a month earlier. Indexes for plywood, fabricated structural metal products, and gypsum products turned up after falling a month ago. On the other hand, the index for plastic construction products turned down 0.2 percent after rising 0.6 percent in the previous month.

The rise in the index for intermediate energy goods slowed to 0.4 percent in May from 3.5 percent in the previous month. The index for diesel fuel turned down 2.5 percent after jumping almost 21 percent in April. Prices for liquefied petroleum gas and commercial electric power also fell after rising in the previous month. The index for jet fuel rose less than a month ago, and prices for gasoline remained unchanged after rising in the prior month. The rise in the index for industrial electric power, however, accelerated to 3.2 percent from 1.5 percent in April. Prices for residual fuel and natural gas to electric utilities turned up after falling a month earlier.

Crude goods

The Producer Price Index for Crude Materials for Further Processing rose 1.3 percent in May, following a 5.3-percent increase in April. The index for energy materials turned down after rising in April. By contrast, prices for foodstuffs and feedstuffs rose more rapidly than in the previous month. The index for basic industrial materials fell less than a month ago. (See table B.)

The index for crude energy materials fell 3.8 percent in May, after a 10.9-percent rise a month earlier. The index for crude petroleum turned down 7.3 percent after an increase of 14.3 percent in April. Prices for natural gas to pipelines also declined in May after rising about 15 percent in the prior month. By contrast, the index for coal rose 2.5 percent following a 3.3 percent decline in April.

In May, prices for crude foodstuffs and feedstuffs rose 6.3 percent, following a 4.0-percent increase a month earlier. Prices for slaughter hogs climbed 14.9 percent after rising 6.7 percent in April. The index for wheat also rose more rapidly than in the previous month. Prices for fresh fruits and melons turned up after falling a month earlier, and prices for fluid milk increased after registering no change in April. By contrast, the index for soybeans rose 5.5 percent in May, after an 8.3- percent increase a month earlier. The indexes for unprocessed finfish and for fresh and dry vegetables fell more rapidly than in the previous month. Prices for Irish potatoes for processing turned down after rising in April.

The index for crude nonfood materials less energy fell 0.3 percent in May, following a decline of 0.5 percent in the prior month. Prices for raw cotton turned down 5.2 percent after rising 7.1 percent in the previous month. The index for hardwood logs, bolts, and timber fell after registering no change in April. By contrast, prices for softwood logs, bolts, and timber rose 0.6 percent in May, after falling 3.9 percent in the prior month. In addition, the indexes for wastepaper and copper ores both turned up after falling in April.

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

Mining. The Producer Price Index for the net output of total domestic mining industries fell 2.1 percent in May, after increasing 8.5 percent in April. (Net output price indexes are not seasonally adjusted.) Prices for the oil and gas extraction industry group index turned down 3.6 percent, after increasing 12.7 percent in the previous month. Prices for the industry group for anthracite mining turned down, after showing no change a month earlier. By contrast, the metal mining and bituminous coal and lignite mining industry group indexes both turned up after decreasing in April. The index for the nonmetallic mineral products industry group moved up 1.1 percent, after edging up modestly in recent months. In May, the Producer Price index for total mining stood at 83.6 (December 1984=100), 14.8 percent higher than a year earlier.

Manufacturing. The Producer Price Index for total domestic manufacturing industries moved up 0.4 percent in May, after rising 0.6 percent in April. The index for the petroleum refining industry group moved up 1.7 percent in May, after advancing 11.3 percent in April. Prices turned down after rising a month earlier for measuring instruments. The index for the paper industry group fell more rapidly than it had the month before. By contrast, prices turned up, following declines a month earlier, for tobacco manufactures, lumber and wood products, leather products, and primary metal industries; the index for the chemicals and allied products industry group increased 0.7 percent, after showing no change in the previous month. In May, the index for total manufacturing was 127.4 (December 1984=100), 2.3 percent above its year earlier level.

Other. Among other industries, prices turned up after decreasing in April for general warehousing and storage, deep sea domestic transportation of freight, tugging and towing services, travel agencies, real estate agents and managers, and building cleaning and maintenance services. Price increases accelerated from April to May for air courier services, airports and airport services, electric power utilities, metal scrap collection, cable and other pay television services, and for skilled and intermediate care facilities. Price declines for waste paper collection slowed from over 16 percent in April to 1.7 percent in May. Prices also fell less than a month earlier for truck rental and leasing and for other specialty hospitals.

By contrast, prices turned down in May, following increases in April, for freight transportation along the Great Lakes, advertising agencies, and air cargo transportation. Indexes also fell, after showing no change in April, for farm product warehousing and storage and for marine cargo handling. Prices for medical laboratories were unchanged after increasing the month before. Price increases slowed for operators of nonresidential buildings and for hotels and motels. Prices fell more in May than in April for natural gas utilities, passenger car rental, and for water transportation of freight, not elsewhere classified.

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. Table 1. Producer Price Indexes and percent changes by stage of processing (1982=100)

1/ Comprehensive relative importance figures are initially computed 3/ Includes crude petrolem. after the publication of December indexes and are recalculated 4/ Excludes crude petroleum. after final December indexes are available. The first-published 5/ Percent of total finished goods. and final December relative importances initially appear, 6/ Pecent of total intermediate materials. respectively, in the release tables containing January and May data. 7/ Formerly titled "Crude materials for 2/ The indexes for Jan. 1996 have been recalculated to incorporate further processing, excluding crude late reports and corrections by respondents. All indexes foodstuffs and feedstuffs, plant and are subject to revision four months after original publication. animal fibers, oilseeds, and leaf tobacco." 8/ Percent of total crude materials. Table 2. Producer Price Indexes and percent changes for selected commodity groupings by stage of processing (1982=100 unless otherwise indicated)

See footnotes at end of table. Table 2. Producer Price Indexes and percent changes for selected commodity groupings by stage of processing - Continued (1982=100 unless otherwise indicated)

1/ The indexes for January 1996 have been recalculated 2/ Not seasonally adjusted. to incorporate late reports and corrections by respondents. 3/ Not available. All indexes are subject to revision four months after original publication. Table 3. Producer Price Indexes for selected commodity groupings (1982=100 unless otherwise indicated)

1/ Data for Jan. 1996 have been revised to reflect the availability of late reports and corrections by respondents. All data are subject to revision 4 months after original publication.

2/ Prices of some items in this grouping are lagged 1 month.

Table #4 Producer price indexes for the net output of major industry groups, not seasonally adjusted