The producer price index for finished goods (PPI) advanced 0.8% in May, seasonally adjusted, the Bureau of Labor Statistics (BLS) announced. From May 2003 to May 2004, prices for finished goods rose 5%, the largest 12-month increase in the finished goods index since 1990. But the “core” PPI, which omits food and energy costs, rose just 1.7% for the latest 12 months, suggesting inflation is still limited to certain goods.
Among intermediate goods, BLS said, “Subsequent to a 1.7% gain in April, the index for materials and components for construction moved up 1.5% in May. Prices for fabricated structural metal products increased 2.5% in May, following a 3.1% rise in the prior month. Prices also increased more slowly for millwork, wiring devices, steel mill products, and fabricated ferrous wire products. The index for nonferrous wire and cable turned down, after advancing in April.