May 2011 Consumer and Producer Price Indices

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The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in May. Over the last 12 months, the all-items index increased 3.6 percent before seasonal adjustment.

The “core” index (i.e., all items less food and energy) increased 0.3 percent in May, its largest increase since July 2008. The indexes for apparel, shelter, new vehicles, and recreation all contributed to the acceleration, rising more in May than in April.

The seasonally adjusted Producer Price Index for Finished Goods (PPI) rose 0.2 percent in May. This advance followed increases of 0.8 percent in April and 0.7 percent in March. At the earlier stages of processing, prices received by manufacturers of intermediate goods climbed 0.9 percent in May, and the crude goods index declined 4.1 percent. On an unadjusted basis, prices for finished goods moved up 7.3 percent for the 12 months ended May 2011, the largest year-over-year gain since an 8.8 percent advance in September 2008.
 

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Details at different stages of processing include:

Finished goods -- The May advance in the finished goods index can be traced primarily to prices for finished energy goods, which rose 1.5 percent. The index for finished goods less foods and energy moved up 0.2 percent. By contrast, prices for finished consumer foods fell 1.4 percent in May.

Intermediate goods – This index moved up 0.9 percent in May, the tenth consecutive monthly increase. About two-thirds of the May rise can be traced to a 0.9 percent advance in prices for intermediate goods other than foods and energy. A 1.4 percent jump in the index for intermediate energy goods also contributed to the increase in intermediate goods prices. For the 12 months ended May 2011, intermediate goods prices rose 10.3 percent, the largest gain since a 15.3 percent jump for the 12 months ended September 2008.

Crude goods -- The index for crude goods decreased 4.1 percent in May. For the three-month period ending in May, crude materials prices moved down 0.8 percent following a 13.6 percent increase from November to February. In May, about half of the broad-based monthly decline can be attributed to a 5.2 percent drop in the index for crude energy materials. Also contributing to the May decrease, prices for crude foodstuffs and feedstuffs fell 4.4 percent and the index for crude nonfood materials less energy moved down 0.9 percent.
 

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Price index changes for the forest products that we track were mixed between April and May. Lumber and Wood Products, softwood lumber, and pulpwood price indices fell; year-over-year index changes were also mixed.
 

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