The US Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for May. Inflation in prices received by producers rose 0.5 per cent in May after declining 0.4 per cent in April.
The increase was based on rising prices for goods, as prices for services were unchanged. Within goods, a 17 per cent jump in the price of gasoline dominated the increase. Goods prices less food and energy increased by 0.2 per cent in May.
Rising production and healthy inventories put downward pressure on wood product prices in May. Softwood lumber prices declined 2.3 per cent for the month and are down 10.2 per cent since the latest peak in early 2014. Prices for OSB declined 4.5 per cent in May and are down 49.7 per cent since the 2013 peak. The return of productive capacity is the primary driver for OSB price declines.
Prices for gypsum were flat in May after modest declines in March and April. Gypsum prices are 1.8 per cent above housing boom peaks.