The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for May. Inflation in prices received by producers (prior to sales to consumers) rose 0.5% in May after declining 0.4% in April.
The increase was based on rising prices for goods, prices for services were unchanged. Within goods, a 17.0% jump in the price of gasoline dominated the increase. Goods prices less food and energy increased by 0.2% in May.
Rising production and healthy inventories put downward pressure on wood product prices in May. Softwood lumber prices declined 2.3% for the month and are down 10.2% since the latest peak in early 2014. Prices for OSB declined 4.5% in May and are down 49.7% 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% above housing boom peaks.