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Producer Price Index At a Glance

Finished Goods Index: Up 0.2%
Finished Goods Core: Up 0.4%
Finished Goods Annual Change: Up 6.5%
Finished Goods Energy: Down 0.2%
Finished Goods Food: Unchanged
Intermediate Goods Index: Up 0.9%
Crude Goods Index: Up 3.2%

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

Producer Price Indexes - April 2008

The Producer Price Index for Finished Goods increased 0.2 percent in April, seasonally
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This
rise followed a 1.1-percent advance in March and a 0.3-percent increase in February. At the
earlier stages of processing, prices received by producers of intermediate goods rose 0.9 percent
following a 2.3-percent gain a month earlier, and the crude goods index advanced 3.2 percent
after climbing 8.0 percent in March. (See table A.)

2007
Apr. 0.7 0.5 2.6 0.2 3.2 1.1 1.0
May .6 -.7 2.9 .2 3.9 1.0 1.0
June .1 -.2 -.3 .2 3.3 .4 .8
July .5 -.1 2.2 .2 4.2 .7 .3
Aug. -.8 0 -4.2 .1 2.3 -.9 -3.5
Sept. .5 1.1 1.2 .1 4.4 0 .9
Oct. .5 1.3 1.1 .1 6.1 .6 4.0
Nov. 2.6 -.2 11.7 .3 7.3 2.9 6.8
Dec. r -.5 r 1.3 r -3.5 r .1 r 6.2 r .2 r 1.8

2008
Jan. r 1.1 1.7 r 2.1 r .5 7.4 r 1.1 r 3.1
Feb. .3 -.5 .8 .5 6.4 .8 3.7
Mar. 1.1 1.2 2.9 .2 6.9 2.3 8.0
Apr. .2 0 -.2 .4 6.5 .9 3.2

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

-2-

In April, the index for finished goods other than foods and energy moved up 0.4 percent
and was partially offset by prices for energy goods, which fell 0.2 percent. The index for
finished consumer foods was unchanged from its March level.

Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.7
percent in April to 176.7 (1982 = 100). From April 2007 to April 2008, finished goods prices
rose 6.5 percent. Over the same period, the finished energy goods index advanced 17.5 percent,
prices for finished goods less foods and energy increased 3.0 percent, and the index for finished
consumer foods climbed 5.2 percent. For the 12 months ended April 2008, prices received by
manufacturers of intermediate goods advanced 10.5 percent, and the crude goods index jumped
34.3 percent.

Finished goods

The index for finished goods less foods and energy moved up 0.4 percent in April
following a 0.2-percent increase in the previous month. Prices for light motor trucks rose 1.3
percent after decreasing 0.3 percent in March. The indexes for commercial furniture and
passenger cars also turned up in April following declines in the preceding month. Prices for
pharmaceutical preparations, alcoholic beverages, and household furniture rose more than they
had in March. By contrast, partially offsetting the acceleration in the index for finished goods
less foods and energy, prices for communication and related equipment declined 0.4 percent after
rising by the same rate in the prior month. The index for book publishing also turned down in
April, and prices for soaps and synthetic detergents increased less than in March. (See table 2.)

2007
Apr. 0.9 1.9 0.8 3.7 1.3 0.8 1.1 11.6
May 0 2.8 .5 3.8 .8 3.0 -1.8 11.3
June 1.9 .7 .3 3.6 -.1 2.2 -.3 15.5
July .7 2.0 .4 4.2 1.1 -.5 .7 12.9
Aug. .4 -2.9 -.4 2.4 -1.6 -6.4 .6 6.1
Sept. 1.3 -.5 .1 4.1 2.7 -.8 2.2 11.3
Oct. 1.2 1.3 .4 5.7 -.2 8.2 1.5 26.8
Nov. 1.4 10.4 .8 7.9 2.9 12.3 -.9 20.9
Dec. r 2.0 r .1 r .1 r 7.1 r 4.2 r .5 r .8 r 19.8

2008
Jan. r 3.5 r 1.8 .8 8.8 r 2.9 r 2.7 r 5.1 31.3
Feb. 2.3 1.1 .6 8.8 .7 5.6 3.3 24.6
Mar. 2.9 5.9 1.1 10.5 2.0 13.4 3.5 31.4
Apr. -.6 .5 1.2 10.5 -.9 4.1 7.9 34.3

-3-

The finished energy goods index fell 0.2 percent in April subsequent to a 2.9-percent rise
a month earlier. Gasoline prices decreased 4.6 percent following a 1.3-percent gain in March.
(Prior to seasonal adjustment, gasoline prices increased 3.2 percent in April.) The diesel fuel
index also turned down in April after rising in the preceding month. The indexes for home
heating oil, liquefied petroleum gas, kerosene, and asphalt advanced less than they had in March.
Conversely, residential natural gas prices climbed 5.4 percent in April after increasing 4.2
percent in the prior month. The indexes for residential electric power and for lubricating and
similar oils also rose more than they had in March.

The index for finished consumer foods was unchanged in April following a 1.2-percent
rise in the prior month. Prices for fresh and dry vegetables dropped 4.1 percent after jumping
15.4 percent in March. The indexes for beef and veal and for roasted coffee also turned down in
April. Prices for eggs for fresh use decreased more than they had in March. By contrast, the
dairy products index rose 0.4 percent in April following a 1.8-percent decline a month earlier.
Prices for pork and soft drinks also turned up after declining a month earlier. The index for
confectionery end products rose more than in March.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components
increased 0.9 percent in April after rising 2.3 percent in March. Leading this deceleration, prices
for intermediate energy goods and for materials for durable manufacturing advanced less in April
than in the prior month. Prices for intermediate foods and feeds turned down after increasing in
March. By contrast, partially offsetting the overall deceleration in the intermediate goods index,
prices for materials for nondurable manufacturing and for materials and components for
construction increased at faster rates than they had in March. The index for intermediate goods
other than foods and energy climbed 1.2 percent in April following a 1.1-percent jump in the
preceding month. (See table B.)

The index for intermediate energy goods advanced 0.5 percent in April following a 5.9-
percent jump in March. Jet fuel prices rose 6.8 percent in April compared with a 10.2-percent
surge a month earlier. The indexes for home heating oil, industrial electric power, natural gas to
electric utilities, and industrial natural gas also increased less than in March. Prices for diesel
fuel, gasoline, and residual fuel turned down in April. By contrast, the index for finished
lubricants rose 2.9 percent after advancing 1.3 percent in March. (See table 2.)

The index for materials for durable manufacturing moved up 1.9 percent in April
following a 3.8-percent increase in March. Prices for copper and brass mill shapes rose 0.4
percent in April after advancing 6.9 percent in the preceding month. The indexes for cold rolled
steel sheet and strip and for secondary aluminum also climbed less than in March. Prices for
primary nonferrous metals and for nonferrous wire and cable turned down in April. The index
for cement fell more than it had in March. Conversely, prices for hot rolled steel bars, plates,
and structural shapes increased 6.2 percent in April compared with a 2.5-percent gain a month
earlier. The index for hot rolled steel sheet and strip also advanced at a faster rate than in March.
Prices for prepared paint and thermoplastic resins turned up in April.

The index for intermediate foods and feeds declined 0.6 percent in April following a 2.9-
percent rise in March. Leading this reversal, prices for prepared animal feeds fell 0.9 percent
after increasing 4.9 percent in March. The indexes for flour; beef and veal; natural, processed,
and imitation cheese; and confectionery materials also turned down in April. Prices for
shortening and cooking oils advanced less than they had in March. By contrast, the index for
fluid milk products moved up 2.9 percent in April following a 5.4-percent drop in the previous
month. Prices for pork and for dry, condensed, and evaporated milk products also rose after
falling in March. The index for malt and malt byproducts climbed more in April than in the
preceding month.

-4-

The index for materials for nondurable manufacturing increased 1.7 percent in April
compared with a 1.5-percent advance in March. Prices for basic inorganic chemicals surged 13.7
percent in April after rising 1.7 percent a month earlier. The indexes for primary basic organic
chemicals and ethanol also climbed more than they had in March. Prices for plastic resins and
materials, nitrogenates, and woodpulp turned up in April. By contrast, the index for intermediate
basic organic chemicals moved up 2.1 percent following a 12.3-percent jump in March. Prices
for inedible fats and oils, paper, and paint materials also rose less in April than in the previous
month.

The index for materials and components for construction advanced 1.0 percent in April
after rising 0.8 percent in March. Prices for fabricated structural metal products jumped 3.1
percent in April following a 1.0-percent increase in the preceding month. The indexes for
concrete products and for paving mixtures and blocks also moved up more than they had in
March. Prices for plumbing fixtures and brass fittings and for softwood lumber turned up in
April. The index for plastic construction products fell less than in March. By contrast, prices for
nonferrous wire and cable decreased 3.1 percent in April after surging 7.9 percent a month
earlier. The index for prefabricated wood buildings and components also turned down in April.
Prices for asphalt felts and coatings and for fabricated ferrous wire products rose less than they
had in March.

Crude goods

The Producer Price Index for Crude Materials for Further Processing advanced 3.2
percent in April following an 8.0-percent increase in March. The index for crude energy
materials rose at a slower rate compared with a month earlier. Prices for crude foodstuffs and
feedstuffs turned down in April. By contrast, partially offsetting the deceleration in crude
materials prices, the index for crude nonfood materials less energy moved up more than it had in
March. (See table B.)

The index for crude energy materials advanced 4.1 percent in April subsequent to a 13.4-
percent gain in the preceding month. Leading this deceleration, the index for crude petroleum
increased 4.5 percent compared with a 17.5-percent surge in March. Similarly, natural gas prices
rose 4.3 percent following an 11.4-percent increase a month earlier. By contrast, the coal index
edged up 0.3 percent in April after falling 0.9 percent in the previous month. (See table 2.)

The index for crude foodstuffs and feedstuffs decreased 0.9 percent in April following a
2.0-percent rise a month earlier. Wheat prices declined 23.1 percent after moving up 0.6 percent
in March. The indexes for fresh vegetables (excluding potatoes) and soybeans also turned down
in April. Prices for corn and slaughter turkeys rose less than they had in March. By contrast, the
slaughter hogs index advanced 10.5 percent compared with a 1.8-percent decline in the
preceding month. Prices for Irish potatoes for processing also turned up in April. The index for
fluid milk declined less than it had in March, and prices for slaughter cattle were unchanged after
decreasing a month earlier.

The index for crude nonfood materials less energy advanced 7.9 percent in April
subsequent to a 3.5-percent rise a month earlier. Leading this acceleration, prices for iron and
steel scrap surged 32.2 percent compared with a 1.4-percent increase in March. The index for
logs, bolts, timber, and pulpwood also moved up more than in the previous month. Prices for
iron ore increased following no change in March, while the hides and skins index turned up in
April. Conversely, the nonferrous metal ores index declined 1.8 percent compared with a 6.9-
percent gain a month earlier. Prices for wastepaper; construction sand, gravel, and crushed
stone; and raw cotton also turned down in April. The index for nonferrous scrap advanced less
than it had in March.

-5-

Net output price indexes

Mining, Utilities, and Manufacturing Industries. The rise in the Producer Price Index for the Net
Output of Total Mining, Utilities, and Manufacturing Industries slowed to 1.2 percent in April from
2.3 percent in March. (Net output price indexes are not seasonally adjusted.) Prices received by the
petroleum and coal products industry group increased 3.3 percent after jumping 13.2 percent in the
prior month. The indexes for the food manufacturing and the oil and gas extraction industry groups
also rose less than they had in March. Prices received by the electrical equipment and appliance
industry group turned down in April after increasing a month earlier. By contrast, partially offsetting
the deceleration in the index for total mining, utilities, and manufacturing industries, the index for the
electric power generation, distribution, and transmission industry group rose 2.7 percent in April
after advancing 0.5 percent in the previous month. Prices received by the chemical manufacturing
industry group also increased more than in March. The index for the transportation equipment
industry group turned up after falling in the prior month. Prices received by the industry groups for
furniture and related products manufacturing and for printing and related support activities advanced
after no change in March. In April, the Producer Price Index for the Net Output of Total Mining,
Utilities, and Manufacturing Industries was 111.6 (December 2006 = 100), 8.2 percent above its
year-ago level.

Trade Industries. The increase in the Producer Price Index for the Net Output of Total Trade
Industries accelerated to 1.2 percent from 0.3 percent in March. (Trade indexes measure changes in
margins received by wholesalers and retailers.) Margins received by wholesalers of nondurable
goods turned up 1.4 percent in April after falling 2.1 percent in the previous month. The margin
index for grocery stores also advanced after decreasing in March. Margins received by electronics
and appliance stores, gasoline stations, department stores, and clothing stores rose more than a month
earlier. By contrast, the margin index for wholesalers of durable goods turned down 1.4 percent in
April after advancing 1.9 percent in the prior month. Margins received by furniture stores also
decreased after rising in March. In April, the Producer Price Index for the Net Output of Total Trade
Industries was 106.7 (December 2006 = 100), 3.5 percent above its year-ago level.

Transportation and Warehousing Industries. The rise in the Producer Price Index for the Net
Output of Total Transportation and Warehousing Industries accelerated to 1.2 percent from 1.0
percent in March. Prices received by the specialized freight trucking industry group rose 4.3 percent
following a 0.3-percent increase in the previous month. The industry indexes for long distance
general freight trucking (truckload) and pipeline transportation of crude oil also advanced more than
in March. Prices received by the industries for scheduled freight air transportation and freight
transportation arrangement turned up in April after declining in the preceding month. By contrast,
the increase in the industry index for scheduled passenger air transportation slowed to 0.9 percent
from 3.3 percent in March. Prices received by couriers and long distance general freight truckers
(less than truckload) also rose less than a month earlier. In April, the Producer Price Index for the
Net Output for Total Transportation and Warehousing Industries was 110.5 (December 2006 = 100),
7.5 percent above its year-ago level.

Traditional Service Industries. The Producer Price Index for the Net Output of Total Traditional
Service Industries turned up 0.7 percent in April after falling 0.6 percent in March. The index for the
depository credit intermediation industry group advanced 4.4 percent following a 7.3-percent
decrease a month earlier. Prices received by offices of physicians (excluding mental health) also
turned up in April, and the index for cellular and other wireless carriers advanced more than in
March. Conversely, the increase in the index for general and medical surgical hospitals slowed to 0.1
percent in April from 0.5 percent in the previous month. Prices received by direct health and medical
insurance carriers, investment bankers and securities dealers, and software publishers also rose less
than in March. The index for passenger car rental turned down after advancing in the prior month.
In April, the Producer Price Index for the Net Output of Total Traditional Service Industries was
102.0 (December 2006 = 100), 0.9 percent above its year-ago level.

Producer Price Index (PPI) - April 2008 [PDf]

Source: Department of Labor, Bureau of Labor Statistics

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