May 2025 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 final demand advanced 0.1 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.2 percent in April and 0.1 percent in March. (See table A.) On an unadjusted basis, the index for final demand rose 2.6 percent for the 12 months ended in May.

The May increase in the index for final demand was led by prices for final demand services, which advanced 0.1 percent. The index for final demand goods rose 0.2 percent.

Prices for final demand less foods, energy, and trade services edged up 0.1 percent in May after falling 0.1 percent in April. For the 12 months ended in May, the index for final demand less foods, energy, and trade services increased 2.7 percent.

Final Demand

Final demand services: The index for final demand services inched up 0.1 percent in May following a 0.4-percent decrease in April. The advance is attributable to a 0.4-percent rise in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, prices for final demand transportation and warehousing services declined 0.2 percent, while the index for final demand services less trade, transportation, and warehousing was unchanged.

Product detail: Leading the increase in prices for final demand services in May, margins for machinery and vehicle wholesaling jumped 2.9 percent. The indexes for traveler accommodation services; apparel, footwear, and accessories retailing; alcohol retailing; and system software publishing also moved higher. Conversely, prices for airline passenger services fell 1.1 percent. The indexes for furniture retailing; securities brokerage, dealing, investment advice, and related services; and portfolio management also decreased. (See table 2.)

Final demand goods: Prices for final demand goods rose 0.2 percent in May after edging up 0.1 percent in April. Over 80 percent of the May advance can be traced to the index for final demand goods less foods and energy, which climbed 0.2 percent. Prices for final demand foods increased 0.1 percent, while the index for final demand energy was unchanged.

Product detail: Within the index for final demand goods in May, prices for tobacco products rose 0.9 percent. The indexes for gasoline, processed poultry, roasted coffee, residential natural gas, and oilseeds also increased. In contrast, prices for jet fuel declined 8.2 percent. The indexes for pork and for carbon steel scrap also fell.

Intermediate Demand by Commodity Type

Within intermediate demand in May, the index for processed goods edged up 0.1 percent, prices for unprocessed goods fell 1.6 percent, and the index for services rose 0.1 percent. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand inched up 0.1 percent in May following a 0.3-percent rise in April. Leading the May increase, the index for processed materials less foods and energy advanced 0.4 percent. Prices for processed foods and feeds moved up 0.5 percent. Conversely, the index for processed energy goods declined 1.2 percent. For the 12 months ended in May, prices for processed goods for intermediate demand advanced 1.9 percent, the largest 12-month increase since rising 2.1 percent in February 2023.

Product detail: A major factor in the May increase in the index for processed goods for intermediate demand was a 4.6-percent rise in prices for primary nonferrous metals. The indexes for gasoline, processed poultry, fabricated structural metal, and paper boxes and containers also moved higher. In contrast, prices for diesel fuel decreased 2.5 percent. The indexes for jet fuel, primary basic organic chemicals, and pork also declined.

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate demand fell 1.6 percent in May, the third consecutive decline. More than three-quarters of the May decrease is attributable to the index for unprocessed energy materials, which dropped 3.5 percent. Prices for unprocessed nonfood materials less energy fell 1.4 percent. Conversely, the index for unprocessed foodstuffs and feedstuffs edged up 0.1 percent. For the 12 months ended in May, prices for unprocessed goods for intermediate demand declined 1.0 percent, the first 12-month decrease since falling 2.2 percent in November 2024.

Product detail: Leading the May decrease in the index for unprocessed goods for intermediate demand, prices for natural gas dropped 18.7 percent. The indexes for grains, raw milk, carbon steel scrap, hay and hayseeds, and hides and skins also fell. In contrast, prices for slaughter steers and heifers rose 7.2 percent. The indexes for crude petroleum and for nonferrous metal ores also advanced.

Services for intermediate demand: The index for services for intermediate demand edged up 0.1 percent in May after declining 0.3 percent in April. The increase can be attributed to a 0.7-percent advance in margins for trade services for intermediate demand. Conversely, the indexes for services less trade, transportation, and warehousing for intermediate demand and for transportation and warehousing services for intermediate demand both decreased 0.1 percent. For the 12 months ended in May, prices for services for intermediate demand rose 1.9 percent.

Product detail: Leading the May advance in the index for services for intermediate demand, margins for metals, minerals, and ores wholesaling rose 4.9 percent. The indexes for residential property management fees; cable network advertising time sales; pipeline transportation of energy products; and hardware, building materials, and supplies retailing also moved higher. In contrast, prices for business loans (partial) decreased 3.7 percent. The indexes for securities brokerage, dealing, investment advice, and related services; warehousing, storage, and related services; and food and alcohol wholesaling also fell.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand inched up 0.1 percent in May, the eighth consecutive advance. In May, the index for total goods inputs to stage 4 intermediate demand rose 0.2 percent, while prices for total services inputs were unchanged. (See table D.) Increases in the indexes for fabricated structural metal; metals, minerals, and ores wholesaling; residential property management fees; metal containers; and processed poultry outweighed decreasing prices for securities brokerage, dealing, investment advice, and related services; business loans (partial); grains; and warehousing, storage, and related services. For the 12 months ended in May, the index for stage 4 intermediate demand advanced 2.4 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand moved up 0.1 percent in May after falling 0.5 percent in both April and March. In May, prices for total services inputs to stage 3 intermediate demand increased 0.2 percent. Conversely, the index for total goods inputs declined 0.1 percent. Advances in the indexes for metals, minerals, and ores wholesaling; slaughter cattle; cable network advertising time sales; ungraded chicken eggs; and slaughter barrows and gilts outweighed decreases in prices for grains, raw milk, jet fuel, and business loans (partial). For the 12 months ended in May, the index for stage 3 intermediate demand rose 1.4 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand fell 0.6 percent in May, the fourth consecutive decrease. In May, prices for total goods inputs to stage 2 intermediate demand dropped 1.2 percent, and the index for total services inputs moved down 0.2 percent. Declines in the indexes for gas fuels; business loans (partial); carbon steel scrap; basic organic chemicals; securities brokerage, dealing, investment advice, and related services; and food and alcohol wholesaling outweighed rising prices for crude petroleum, pipeline transportation of energy products, and oilseeds. For the 12 months ended in May, the index for stage 2 intermediate demand was unchanged.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand increased 0.2 percent in May after edging down 0.1 percent in April. In May, the index for total services inputs to stage 1 intermediate demand rose 0.3 percent, and prices for total goods inputs advanced 0.1 percent. Increases in the indexes for metals, minerals, and ores wholesaling; data processing and related services; hardware, building materials, and supplies retailing; residential property management fees; traveler accommodation services; and prepared asphalt, tar roofing, and siding products outweighed falling prices for securities brokerage, dealing, investment advice, and related services; grains; and diesel fuel. For the 12 months ended in May, the index for stage 1 intermediate demand rose 2.2 percent, the largest 12-month increase since moving up 3.8 percent in February 2023.

BLS to Discontinue Selected PPIs

With the release of Producer Price Index (PPI) data for July 2025 on August 14, 2025, BLS will end calculation and publication of 5 Final Demand-Intermediate Demand (FD-ID) indexes, listed below.

FD-ID code FD-ID Title FD49103 Final demand less foods, food and nonalcoholic beverages for immediate consumption, and energy FD49105 Final demand less foods and food and nonalcoholic beverages for immediate consumption FD49202 Total finished less foods, food and nonalcoholic beverages for immediate consumption, and energy FD49204 Total finished less foods and food and nonalcoholic beverages for immediate consumption ID69215 Nonfood materials excluding fuel for manufacturing, excluding selected items

In addition, with the release of July 2025 PPI data, BLS will stop calculation and publication of about 350 PPIs from the industry, commodity, and special index categories. Details of these index eliminations are available at www.bls.gov/ppi/notices/2025/bls-to-discontinue-selected- ppis.htm.