The Bureau of Labor Statistics said that producer prices for final demand goods and services were unchanged in May, pulling back from a 0.5 percent gain in April. For manufacturers, producer prices for final demand goods edged down 0.1 percent in May, only slightly offsetting the April 0.7 percent increase. Both food and energy costs were lower, down 0.2 percent and 3.0 percent, respectively. On a year-over-year basis, final demand food and energy costs have risen 1.0 percent and 0.8 percent, respectively. Excluding food and energy, producer prices for final demand goods were up 0.1 percent.
Overall, producer prices for final demand goods and services have increased 2.4 percent since May 2016, easing a bit from April’s 2.5 percent year-over-year pace, which was the fastest pace since February 2012. That represents a notable acceleration in inflationary pressures after being unchanged in August, and yet, this latest figure suggests that the pickup has stabilized, at least for now. In a similar way, core producer prices – which exclude food, energy and trade services – have grown 2.1 percent over the past 12 months, the same rate as seen in April but up from 0.9 percent one year ago.