The headline Final Demand Producer Price Index remained stable during May following a 0.5% April gain. The y/y increase was firm at 2.4%. Expectations also were for no change in the Action Economics Forecast Survey. The PPI excluding food and energy increased 0.3% after a 0.4% rise. A 0.2% monthly gain had been expected. The 2.1% y/y increase was up from little change y/y at the end of 2005.

An updated measure of "core" PPI inflation, final demand prices excluding food, energy, and trade services prices, eased 0.1% (+2.1% y/y) following a 0.7% jump.

Final demand goods prices declined 0.5% (+2.9% y/y) and reversed April's increase. Final demand energy prices declined 3.0% (+7.6% y/y) as gasoline prices dropped 11.2% (+6.4% y/y). Home heating oil prices declined 8.9% (+18.0% y/y), but natural gas prices ticked 0.4% higher (13.0% y/y). Food prices eased 0.2% (+0.9% y/y). Beef & veal prices jumped 12.1% (2.4% y/y) but fruit & melon prices fell 12.3% (+9.3% y/y). Egg prices reversed most of April's increase with an 11.8% decline (-1.0% y/y). Bakery product prices eased 0.1%, steady y/y. Pork prices fell 2.5% (-4.4% y/y) and dairy product prices eased 0.5% (+2.3% y/y).

Nondurable consumer goods prices excluding food & energy improved 0.4% for a second straight month. The y/y increase of 3.7% was down versus a 4.1% y/y rise in June 2015. Women's apparel prices rose 0.8% y/y and men's apparel costs also increased 0.8% y/y. Finished consumer durable goods prices eased 0.1% (+1.0% y/y). Passenger car prices declined 1.4% (-0.1% y/y) and light truck costs dipped 0.2% (+1.6% y/y). Furniture prices dipped 0.1% (+1.5% y/y) while appliance prices increased 0.4% (0.8% y/y). Private capital equipment prices eased 0.1% (+0.7% y/y).

Prices of final demand for services increased 0.3% (2.1% y/y) following 0.4% gain, while trade services prices jumped 1.1% (2.0% y/y). That followed a 0.3% April drop. Trade of finished goods strengthened 1.2% (2.0% y/y) after a 0.5% decline. Prices for transportation of private passengers declined 2.1% (+4.6% y/y) and reversed April's jump. Transportation & warehousing costs held steady (1.5% y/y) following a 0.3% increase.

Final demand construction costs improved 0.1% (1.0% y/y) following a 0.4% increase. Private construction costs gained 0.1% (1.2% y/y) while government sector building prices also improved 0.1% (0.9% y//y).

Prices of processed goods for intermediate demand notched 0.1% higher following a 0.5% increase. The 4.8% y/y gain compared to 5.7% price deflation during 2016.

The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectations figures are available in the AS1REPNA database.