The cost of goods and services one step shy of the retail level held steady in May.
According to the Bureau of Labor Statistics (BLS), its Producer Price Index (PPI) for final demand was unchanged last month following a surge of 0.5% in April and a 0.1% dip in March.
For the 12 months ended in May, the PPI is 2.4%
Goods and services
The cost of goods fell 0.5% last month the biggest decline since a drop of 0.6% in February 2016. Most May's decline was in energy prices, which plummeted 3.0%, thanks to a slide of 11.2% in gasoline prices.
Food prices dipped 0.2%. Fresh & dry vegetables and fresh fruits & melons were lower, while beef prices rose.
The “core” inflation rate for goods, which strips out food and energy, edged 0.1%.
Services prices were 0.3% in May on top of April's 0.4% advance. Roughly half of the increase was due to a 16.1% run-up in the cost of fuels and lubricants retailing. Prices for clothing, shoes and accessories retailing; machinery and equipment wholesaling; residential real estate loans (partial); automobiles & automobile parts retailing; and food wholesaling also moved higher.
Hotel room prices fell 5.2%, with airline passenger services and food retailing also dropping.
The services core inflation rate -- less trade, transportation, and warehousing -- fell 0.1%.
The complete report may be found on the BLS website.
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