Wholesale prices rise 3.1% in May

The Producer Price Index for final demand rose 3.1% in May, from the same month in 2017, and the rise was the largest since a 3.1% increase in January 2012, according to the Bureau of Labor Statistics. The index measures the wholesale price of goods, services and construction, and data from the Producer Price Indexes are not seasonally adjusted.

Since 2011, the index has ranged between -1.4% in October 2015 to 4.5% in July and September 2011. Following are some of the price components that comprise of the final demand index.

Prices for final demand goods rose 4.4% in May 2018, from the same month in 2017, and this was the largest rise since a 4.7% increase in December 2011, according to the BLS. Prices for final demand energy rose 16.5%, and the increase was the largest since a 19.2% rise in February 2017.

The prices for the final demand goods, excluding food and energy, and final demand services both rose 2.4% in May. In March, the previous and latter prices rose, 2.7% and 2.9%, respectively. Prices for final demand transportation and warehousing services rose 5% in May, and in March, the prices also increased by 5%. Prices for final demand trade services rose 1.9% in May, and in March, they rose by 2%.

Prices for final demand services, excluding trade, transportation and warehousing, rose 2.3% in May. In April, the prices increased 2.4%. Prices for final demand services for construction increased 4.1% in May. In April, the prices rose 4.2%.