The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for April. Inflation in prices received by producers (prior to sales to consumers) fell 0.4% in April after a modest increase (0.2%) in March. The decline was dominated by goods, and mainly energy, but prices for services also declined by 0.1%.
Prices for gypsum flattened out in April after declining in March but remain above the 2014 average. Softwood lumber prices declined 0.7% in April and are down 4.7% over the last 12 months. Prices for OSB declined 2.3% in April and are down 11.1% over the last 12 months. A strong dollar has led to discounts on the price of Canadian imports and in turn kept downward pressure on prices of domestically produced wood products. Softness in prices in the near term can be expected.