EconoIndicators / Producer Price Indexes (PPI)

Producer Price Index At a Glance

Finished Goods Index: Up 3.2%
Finished Goods Core: Up 0.4%
Finished Goods Annual Change: Up 7.2%
Finished Goods Energy: Up 14.1%
Finished Goods Food: Unchanged
Intermediate Goods Index: Up 3.7%
Crude Goods Index: Up 8.7%

Technorati Tags: PPI, inflation, Producer, Price, Index

Producer Price Indexes - November 2007

The Producer Price Index for Finished Goods rose 3.2 percent in November, seasonally
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This
gain followed increases of 0.1 percent in October and 1.1 percent in September. At the earlier
stages of processing, prices for intermediate goods moved up 3.7 percent after rising 0.1 percent
in the prior month, while the crude goods index increased 8.7 percent following a 2.4-percent
advance in October. (See table A.)

2006
Nov. 1.6 0.1 5.4 0.9 0.9 0.6 11.7
Dec. .7 1.1 2.4 .1 1.1 .9 2.6

2007
Jan. -.6 1.0 -4.3 .2 .1 -.7 -5.5
Feb. 1.2 1.7 3.0 .4 2.4 .8 9.0
Mar. 1.0 1.6 3.8 -.1 3.1 1.2 2.6
Apr. .9 .5 3.3 .1 3.2 1.0 1.1
May .7 -.6 3.5 .2 3.9 1.2 1.3
June .1 -.4 -.2 .2 3.3 .4 1.1
July r .7 r .1 r 2.5 r .3 r 4.2 r .8 r .5
Aug. r -1.5 r -.5 r -7.0 r .1 2.2 r -1.3 r -2.9
Sept. 1.1 1.5 4.1 .1 4.4 .4 .1
Oct. .1 1.0 -.8 0 6.1 .1 2.4
Nov. 3.2 0 14.1 .4 7.2 3.7 8.7

r=revised. Some of the figures shown above and elsewhere in this release may differ
from those previously reported because data for July 2007 have been revised to
reflect the availability of late reports and corrections by respondents.

-2-

The acceleration in the finished goods index was led by prices for energy goods, which
surged 14.1 percent in November following a 0.8-percent decrease in October. Prices for
finished goods excluding foods and energy rose 0.4 percent subsequent to no change in the
preceding month. By contrast, partially offsetting the acceleration in the finished goods index,
prices for finished consumer foods were unchanged compared with a 1.0-percent increase a
month earlier.

Before seasonal adjustment, the Producer Price Index for Finished Goods advanced 1.6
percent in November to 171.3 (1982 = 100). From November 2006 to November 2007, prices
for finished goods rose 7.2 percent. Over the same period, the finished energy goods index
climbed 23.6 percent, prices for finished consumer foods increased 7.3 percent, and the index for
finished goods other than foods and energy moved up 2.0 percent. For the 12 months ended
November 2007, prices for intermediate goods increased 8.1 percent, while the crude goods
index jumped 22.4 percent.

Finished goods

Prices for finished energy goods increased 14.1 percent in November following a 0.8-
percent decline a month earlier. The gasoline index jumped 34.8 percent after falling 3.1 percent
in the preceding month. Prices for home heating oil, diesel fuel, and asphalt also turned up in
November. The indexes for residential electric power, liquefied petroleum gas, and kerosene
rose more than in the prior month. Conversely, slightly counteracting the upturn in finished
energy goods prices, the index for residential natural gas fell 5.2 percent in November following
a 2.4-percent decline in the previous month. (See table 2.)

2006
Nov. 2.4 4.3 -0.4 2.1 2.5 26.5 -0.6 -10.5
Dec. 1.2 3.9 .1 2.8 -.1 4.8 1.7 -4.7

2007
Jan. 1.8 -3.7 0 1.1 2.4 -15.3 1.8 -9.5
Feb. 3.0 3.5 0 2.2 7.4 14.3 2.9 7.7
Mar. 1.8 4.2 .4 3.3 2.4 .3 7.4 13.3
Apr. .9 1.4 .8 3.7 1.5 .7 1.3 11.6
May 0 3.8 .6 3.8 1.0 3.0 -1.3 11.3
June 1.8 .3 .2 3.6 .5 2.3 0 15.5
July r .7 r 2.2 .4 r 4.2 1.9 r -.5 r .6 r 12.9
Aug. r .4 r -4.1 -.5 2.4 -1.5 r -5.2 r .8 6.9
Sept. 1.4 1.1 .1 4.2 2.4 -2.0 1.6 11.4
Oct. 1.0 -.1 .1 5.6 -1.8 5.9 1.4 25.7
Nov. 1.2 13.3 1.0 8.1 2.0 17.0 -.5 22.4

-3-

Prices for finished goods excluding foods and energy rose 0.4 percent in November
subsequent to no change in October. Prices for light motor trucks advanced 2.3 percent
compared with a 2.7-percent decrease in the prior month. The indexes for alcoholic beverages,
soaps and synthetic detergents, and for communication and related equipment also turned up in
November. Prices for pharmaceutical preparations increased after no change a month earlier,
and the index for newspaper circulation was unchanged following a decline in the preceding
month. By contrast, prices for cigarettes fell 0.5 percent following a 1.0-percent advance in
October. The index for household appliances also turned down in November. Prices for
passenger cars and civilian aircraft rose less than they had in the previous month. The index for
electronic computers fell more than in October.

The finished consumer foods index was unchanged in November subsequent to a 1.0-
percent increase a month earlier. The index for fresh and dry vegetables fell 13.2 percent
compared with a 29.1-percent advance in October. Prices for soft drinks and for processed fruits
and vegetables also turned down in November. The beef and veal index declined more than it
had a month earlier, while prices for confectionary end products rose less than in the preceding
month. By contrast, the pork index advanced 2.0 percent in November following a 3.3-percent
decrease in the previous month. Prices for eggs for fresh use, dairy products, processed young
chickens, and processed turkeys also turned up in November.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components
advanced 3.7 percent in November following a 0.1-percent gain in October. Most of this
acceleration can be traced to rising prices for intermediate energy goods, which fell in the
previous month. The indexes for materials for nondurable manufacturing and for intermediate
foods and feeds increased more than they had in October. Prices for materials for durable
manufacturing turned up in November. Conversely, partially offsetting the acceleration in the
intermediate goods index, prices for materials and components for construction declined after
increasing in the prior month. Excluding foods and energy, prices for intermediate goods
advanced 1.0 percent following a 0.1-percent rise in October. (See table B.)

The intermediate energy goods index jumped 13.3 percent in November after edging
down 0.1 percent a month earlier. Diesel fuel prices surged 35.8 percent following a 4.0-percent
drop in the previous month. The indexes for gasoline, home heating oil, residual fuel, and
commercial electric power also turned up after declining in October. Prices for jet fuel and
industrial electric power rose more in November compared with a month earlier. By contrast,
the index for commercial natural gas decreased 6.0 percent following a 1.2-percent decline in
October. Prices for industrial natural gas and for natural gas to electric utilities turned down in
November. (See table 2.)

The index for materials for nondurable manufacturing moved up 3.6 percent following a
1.1-percent advance in October. Prices for basic organic chemicals climbed 8.1 percent in
November after rising 0.8 percent in the preceding month. The indexes for plastic resins and
materials and for paper also increased more than they had in the prior month. Prices for fertilizer
materials, paint materials, and processed yarns and threads turned up after declining in October.
Conversely, paperboard prices decreased 0.4 percent in November after rising 3.4 percent in the
preceding month. The indexes for basic inorganic chemicals and for inedible fats and oils
advanced less than in October.

-4-

Prices for materials for durable manufacturing increased 1.1 percent in November after
moving down 0.4 percent in the previous month. Cold rolled steel sheet and strip prices
advanced 9.7 percent following a 7.7-percent decrease a month earlier. The indexes for
aluminum mill shapes, building paper and board, semifinished steel mill products, and secondary
aluminum also turned up after falling in October. Prices for thermoplastic resins and for hot
rolled steel sheet and strip rose more than they had in the previous month. By
contrast, prices for copper and brass mill shapes turned down 4.9 percent in November following
a 0.5-percent increase in the prior month.

The intermediate foods and feeds index rose 1.2 percent subsequent to a 1.0-percent
increase in the preceding month. Prices for natural, processed, and imitation cheese advanced
2.2 percent following a 2.3-percent decline in October. The indexes for pork and processed
young chickens also turned up in November. Prices for prepared animal feeds and for shortening
and cooking oils rose more than in October. By contrast, flour prices moved down 2.1 percent
after rising 5.9 percent in the prior month. The indexes for beef and veal; dry, condensed, and
evaporated milk products; and refined sugar and byproducts fell more than they had a month
earlier.

Prices for materials and components for construction fell 0.1 percent in November
following a 0.1-percent increase in the previous month. Prices for nonferrous wire and cable
dropped 5.7 percent after rising 4.3 percent in the prior month. The index for asphalt felts and
coatings also turned down in November. Prices for mineral wool for structural insulation fell
more than they had in the preceding month. By contrast, prices for steel mill products rose 2.3
percent after declining 1.8 percent a month earlier. The indexes for building paper and board and
for plastic construction products also turned up in November. Prices for fabricated structural
metal products and concrete products increased after no change in October. The index for
gypsum products fell less than in the prior month.

Crude goods

The increase in the Producer Price Index for Crude Materials for Further Processing
accelerated to 8.7 percent in November from 2.4 percent in October. The index for crude energy
materials climbed more in November than a month earlier. Prices for crude foodstuffs and
feedstuffs turned up after declining in the previous month. Conversely, partially offsetting the
acceleration in the index for crude materials, the index for basic industrial materials moved down
after advancing in October. (See table B.)

The index for crude energy materials jumped 17.0 percent in November after increasing
5.9 percent in October. The advance in the index for natural gas accelerated to 21.6 percent in
November from 9.7 percent in the previous month. Prices for crude petroleum climbed 15.5
percent following a 3.7-percent increase in October. The index for coal turned up 0.5 percent
after a similar decline a month earlier.

The index for crude foodstuffs and feedstuffs turned up 2.0 percent in November after
falling 1.8 percent in October. The increase in the index for corn accelerated to 16.0 percent in
November from 0.5 percent in the preceding month. Prices for soybeans also climbed more than
in October. The indexes for slaughter broilers and fryers, hogs, and cattle moved down less than
a month earlier. Prices for fluid milk turned up after falling in October. Conversely, the index
for fresh vegetables, except potatoes decreased 18.8 percent in November following a 34.2-
percent rise in the prior month. Prices for wheat also turned down after rising in October.

-5-

The index for crude nonfood materials less energy turned down 0.5 percent in November
after rising 1.4 percent in October. The index for iron and steel scrap declined 7.6 percent in
November following a 0.7-percent decrease in the previous month. Prices for softwood logs,
bolts, and timber also moved down more than a month earlier. The index for copper base scrap
turned down after rising in October, and prices for wastepaper moved up less than in the
previous month. Conversely, the advance in the index for gold ores accelerated to 8.6 percent in
November from 4.8 percent in the prior month. Prices for construction sand, gravel, and crushed
stone and for aluminum base scrap also rose more than in October. The index for phosphates
turned up after declining in the previous month.

Net output price indexes

Mining, Utilities, and Manufacturing Industries. The Producer Price Index for the Net Output
of Total Mining, Utilities, and Manufacturing Industries climbed 1.9 percent in November after
inching up 0.1 percent in October. (Net output price indexes are not seasonally adjusted.)
Leading this acceleration, prices received by petroleum and coal products manufacturers jumped
14.1 percent in November after edging down 0.1 percent a month earlier. The industry group
indexes for food, primary metal, and fabricated metal products manufacturing also turned up
after falling in October. Prices received by the electric power distribution industry declined less
in November than they had in the prior month. The industry indexes for chemical
manufacturing, oil and gas extraction, and natural gas distribution moved up at faster rates than
they had in October. By contrast, partially counteracting the acceleration in the total mining,
utilities, and manufacturing industries index, prices received by transportation equipment
producers increased 0.4 percent in November following a 2.0-percent rise in the preceding
month. The index for the beverage and tobacco manufacturing industry group was unchanged
in November compared with a gain in the previous month, while prices received by the mining
support activities industry group turned down after rising in October.

Trade Industries. The Producer Price Index for the Net Output of Total Trade Industries
decreased 0.7 percent in November compared with a 1.4-percent rise in October. (Trade indexes
measure changes in margins received by wholesalers and retailers.) Margins received by
gasoline stations dropped 9.0 percent in November after jumping 11.7 percent a month earlier.
The margin indexes for merchant wholesalers of nondurable goods, department stores, grocery
stores, and fuel dealers also turned down after increasing in October. Margins received by
merchant wholesalers of durable goods fell more in November than they had in the preceding
month. By contrast, the margin index for automobile dealers rose 0.8 percent after a 0.8-percent
drop in October. Margins received by clothing stores and furniture stores also turned up in
November.

Transportation and Warehousing Industries. The Producer Price Index for the Net Output of
Total Transportation and Warehousing Industries advanced 0.6 percent in November after rising
1.0 percent in October. Prices received by the local, general freight trucking industry moved up
1.1 percent in November compared with a 1.5-percent increase in the previous month, while the
index for scheduled passenger air transportation fell 0.4 percent following a 4.7-percent advance
in October. Prices received by the inland water freight transportation industry declined more in
November than they had in the preceding month, while the index for the nonscheduled air
transportation industry rose less than it had in October. By contrast, prices received by the
industry group for long-distance, general freight trucking moved up 1.2 percent in November
after no change in the prior month. The industry indexes for couriers and freight transportation
arrangement turned up in November. Prices received by the industries for long-distance
specialized freight trucking (excluding used goods) and line-haul railroads increased at faster
rates than they had in October.

-6-

Traditional Service Industries. The Producer Price Index for the Net Output of Total
Traditional Service Industries climbed 0.6 percent in November following no change in October.
Prices received by the depository credit intermediation industry group jumped 4.4 percent after
dropping 3.0 percent in the previous month. The indexes for management consulting services
and casino hotels also turned up in November. Prices received by direct life insurance carriers
were unchanged following declines in October. By contrast, the index for general medical and
surgical hospitals moved up 0.6 percent after increasing 1.6 percent in the prior month. Prices
received by the industries for wired telecommunications carriers, offices of real estate agents and
brokers, and passenger car rental turned down in November. The index for offices of physicians
(excluding mental health) was unchanged compared with an October advance.

Source: Department of Labor, Bureau of Labor Statistics

Rate this:

3.0

Share and Enjoy: