Pic: Shutterstock/Sapsiwai
A notable decline in final demand goods prices, which dropped 1.6 per cent, was largely responsible for May’s PPI decrease. However, the final demand services index saw a 0.2 per cent increase. Excluding foods, energy, and trade services, prices for final demand remained steady, after a slight 0.1 per cent rise in April, the US Bureau of Labor Statistics said in a press release.
The drop in final demand goods prices was led by a significant 6.8 per cent reduction in the final demand energy index. Around 60 per cent of this decrease is due to a substantial 13.8 per cent drop in gasoline prices. Notably, truck transportation of freight prices fell by 2.1 per cent.
Intermediate demand saw drops in both processed and unprocessed goods prices, with declines of 1.5 per cent and 4.8 per cent respectively. These figures reflect significant decreases in energy goods and crude petroleum prices.
Intermediate demand services, however, saw an increase led by a 3.2 per cent rise in business loan prices. Prices for stage 4, 3, 2, and 1 intermediate demand all saw decreases in May, reflecting falling prices in diesel fuel, jet fuel, and gasoline.
Fibre2Fashion News Desk (NB)