Producer Price Index At a Glance
- Finished Goods Index: Up 1.8%
- Finished Goods Core: Up 0.2%
- Finished Goods Annual Change: Up 9.2%
- Finished Goods Energy: Up 6.0%
- Finished Goods Food: Up 1.5%
- Intermediate Goods Index: Up 2.1%
- Crude Goods Index: Up 3.7%
Technorati Tags: PPI, inflation, Producer, Price, Index
Producer Price Indexes - June 2008
The Producer Price Index for Finished Goods increased 1.8 percent in June, seasonally
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This
increase followed advances of 1.4 percent in May and 0.2 percent in April. At the earlier stages
of processing, prices received by producers of intermediate goods rose 2.1 percent in June after
moving up 2.9 percent in the prior month, and the crude goods index increased 3.7 percent
following a 6.7-percent gain in May. (See table A.)
Table A. Monthly and annual percent changes in selected stage-of-processing price indexes, seasonally adjusted Month Finished goods Intermediate
goods Crude
goods
Total Foods Energy Except foods
and energy Change in
finished goods
from 12 months
ago (unadj.)
2007
June
0.1 -0.2 -0.3 0.2 3.3 0.4 0.8
July
0.5 -0.1 2.2 0.2 4.2 0.7 0.3
Aug.
-0.8 0.0 -4.2 0.1 2.3 -0.9 -3.5
Sept.
0.5 1.1 1.2 0.1 4.4 0.0 0.9
Oct.
0.5 1.3 1.1 0.1 6.1 0.6 4.0
Nov.
2.6 -0.2 11.7 0.3 7.3 2.9 6.8
Dec.
-0.5 1.3 -3.5 0.1 6.2 0.2 1.8
2008
Jan.
1.2 1.7 2.2 0.6 7.4 1.2 2.9
Feb.(1)
0.3 -0.6 1.0 0.4 6.5 0.9 3.9
Mar.(1)
1.0 1.3 2.5 0.3 6.9 2.2 8.0
Apr.
0.2 0.0 -0.2 0.4 6.5 0.9 3.2
May
1.4 0.8 4.9 0.2 7.2 2.9 6.7
June
1.8 1.5 6.0 0.2 9.2 2.1 3.7
Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2008 have been revised to reflect the availability of late reports and corrections by respondents.
Within finished goods, the index for energy goods climbed 6.0 percent in June after rising
4.9 percent in May. Prices for consumer foods increased 1.5 percent subsequent to a 0.8-percent
advance in the previous month, and the index for finished goods other than foods and energy
increased 0.2 percent for the second consecutive month.
During the first 6 months of 2008, the finished goods index rose at a 12.4-percent
seasonally adjusted annual rate (SAAR) after increasing at a 5.8-percent SAAR during the
second half of 2007. Prices for finished energy goods climbed at a 38.1-percent SAAR from
December 2007 to June 2008 after rising at a 16.7-percent SAAR for the 6 months ended
December 2007. The index for finished goods other than foods and energy advanced at a 4.5-
percent SAAR for the 6 months ended in June after rising at a 1.7-percent SAAR during the prior
6 month period. Prices for finished consumer foods moved up at a 9.8-percent SAAR during the
first half of 2008 after increasing at a 7.1-percent SAAR through the second half of 2007. At the
earlier stages of processing, the intermediate goods index increased at a 22.5-percent SAAR
from December 2007 to June 2008 after moving up at a 7.0-percent SAAR during the latter half
of 2007, and prices for crude goods surged at a 74.0-percent SAAR for the 6 months ended in
June after climbing at a 22.0-percent SAAR for the 6 months ended December 2007. (See
summary table.)
Before seasonal adjustment, the Producer Price Index for Finished Goods rose 1.6 percent
in June to 182.5 (1982 = 100). From June 2007 to June 2008, prices for finished goods increased
9.2 percent. Over the same period, prices for finished energy goods surged 27.0 percent, the
index for finished goods other than foods and energy gained 3.0 percent, and the index for
finished consumer foods advanced 8.3 percent. For the 12 months ended June 2008, prices
received by intermediate goods producers moved up 14.5 percent, and the crude goods index
climbed 45.5 percent.
Summary of December-to-December, 6-month, and 3-month seasonally adjusted annual rates of change in price indexes at selected stages of processing Grouping Percentage change
12 months ended
December Seasonally adjusted annual rate for
2005 2006 2007 6 months
ended
Dec.
2007 6 months
ended
June
2008 3 months
ended
Mar.
2008 3 months
ended
June
2008
Finished goods
5.4 1.1 6.2 5.8 12.4 10.7 14.1
Finished consumer foods
1.7 1.7 7.6 7.1 9.8 9.9 9.6
Finished energy goods
23.9 -2.0 17.8 16.7 38.1 25.5 51.9
Finished goods less foods and energy
1.4 2.0 2.0 1.7 4.5 5.3 3.7
Finished consumer goods less foods and energy
1.6 1.8 2.4 2.1 4.9 5.7 4.2
Capital equipment
1.2 2.3 1.4 1.1 3.8 4.3 3.2
Intermediate materials, supplies, and components
8.6 2.8 7.1 7.0 22.5 18.3 26.8
Intermediate foods and feeds
2.4 4.7 17.2 14.9 27.3 40.6 15.3
Intermediate energy goods
26.2 -3.3 19.8 21.8 48.9 40.7 57.5
Intermediate materials less foods and energy
4.8 4.5 3.3 2.4 14.8 10.4 19.3
Materials for nondurable manufacturing
8.9 1.2 12.8 11.2 27.4 20.2 35.0
Materials for durable manufacturing
5.9 12.5 1.7 -6.4 31.7 26.0 37.7
Materials and components for construction
6.1 4.3 2.0 0.8 13.2 7.0 19.8
Crude materials for further processing
21.1 -4.7 19.8 22.0 74.0 78.0 70.1
Foodstuffs and feedstuffs
1.6 2.8 24.9 19.7 21.8 25.0 18.7
Crude energy materials
42.2 -15.7 16.2 27.4 132.7 128.4 137.0
Crude nonfood materials less energy
5.2 17.0 15.6 10.1 61.3 59.2 63.4
“-” Data not available.
NOTE: Late reports and corrections by respondents may cause some indexes to change 4 months after original publication. In addition, seasonally adjusted indexes may be revised for 5 years, due to the recalculation of seasonal factors each January.
Finished goods
Prices for finished energy goods advanced 6.0 percent in June after increasing 4.9 percent
in May. The residential natural gas index rose 6.6 percent subsequent to a 3.8-percent gain in the
previous month. Similarly, prices for liquefied petroleum gas, home heating oil, residential
electric power, and unleaded mid-premium gasoline also advanced more than they had in May.
The index for lubricating and similar oils moved up in June compared with no change a month
earlier. By contrast, slightly counteracting the acceleration in the finished energy goods index,
prices for unleaded regular gasoline advanced 9.0 percent in June following a 9.6-percent
increase in the previous month. The indexes for diesel fuel and kerosene also rose less than they
had in May. (See table 2.)
Prices for finished consumer foods moved up 1.5 percent in June following a 0.8-percent
increase in May. The index for fresh and dry vegetables advanced 14.7 percent after declining
9.0 percent in the preceding month. Prices for pears, eggs for fresh use, fluid milk products, and
processed young chickens also turned up in June. The index for natural, processed, and imitation
cheese increased more than it had in the prior month. By contrast, prices for pork fell 2.4 percent
compared with an 8.0-percent increase a month earlier. The indexes for noncarbonated soft
drinks and confectionery end products also turned down in June. Prices for manufactured ice
and for shortening and cooking oils advanced less than they had in May.
The index for finished goods other than foods and energy moved up 0.2 percent in June,
the same increase as in May. Higher prices for passenger cars, pet food, aircraft and aircraft
equipment, commercial furniture, mining machinery and equipment, railroad equipment, and
textbooks outweighed lower prices for light motor trucks, consumer plastic products, and
telephone and telegraph equipment.
Table B. Monthly and annual percent changes in selected price indexes for intermediate goods and crude goods, seasonally adjusted Month Intermediate goods Crude goods
Foods Energy Except
foods
and energy Change in
intermediate
goods from
12 months
ago (unadj.) Foods Energy Except
foods
and energy Change in
crude
goods from
12 months
ago (unadj.)
2007
June
1.9 0.7 0.3 3.6 -0.1 2.2 -0.3 15.5
July
0.7 2.0 0.4 4.2 1.1 -0.5 0.7 12.9
Aug.
0.4 -2.9 -0.4 2.4 -1.6 -6.4 0.6 6.1
Sept.
1.3 -0.5 0.1 4.1 2.7 -0.8 2.2 11.3
Oct.
1.2 1.3 0.4 5.7 -0.2 8.2 1.5 26.8
Nov.
1.4 10.4 0.8 7.9 2.9 12.3 -0.9 20.9
Dec.
2.0 0.1 0.1 7.1 4.2 0.5 0.8 19.8
2008
Jan.
3.5 1.9 0.9 8.9 3.1 1.8 4.7 30.8
Feb.(1)
2.4 1.2 0.6 9.0 1.2 6.6 3.6 24.6
Mar.(1)
2.7 5.7 1.0 10.5 1.4 13.3 3.5 31.4
Apr.
-0.6 0.5 1.2 10.5 -0.9 4.1 7.9 34.3
May
3.2 6.2 2.0 12.6 1.8 13.1 5.0 41.5
June
1.0 5.0 1.3 14.5 3.5 5.4 -0.2 45.5
Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2008 have been revised to reflect the availability of late reports and corrections by respondents.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components rose 2.1
percent in June following a 2.9-percent increase in the prior month. This price deceleration was
broad based as the indexes for intermediate energy goods, materials for durable manufacturing,
intermediate foods and feeds, materials for nondurable manufacturing, materials and components
for construction, and containers all rose less than in May. Price advances for intermediate
materials less foods and energy slowed to 1.3 percent in June from 2.0 percent in a month earlier.
(See table B.)
The intermediate energy goods index moved up 5.0 percent in June after climbing 6.2
percent in the previous month. The index for diesel fuel rose 6.7 percent after jumping 11.2
percent in May. Prices for natural gas to electric utilities and residual fuels also advanced less
than in May. The indexes for both commercial and industrial electric power turned down in June
after rising in the prior month. By contrast, partially offsetting the deceleration in the
intermediate energy goods index, prices for jet fuels advanced 8.5 percent after moving up 6.9
percent in May. The indexes for liquefied petroleum gas and home heating oil also rose more
than in May. (See table 2.) The intermediate energy goods index advanced at a 48.9-percent
SAAR from December 2007 to June 2008 after moving up at a 21.8-percent SAAR during the
second half of 2007.
The increase in the index for materials for durable manufacturing slowed to 1.7 percent in
June from 4.5 percent in the preceding month. The index for cold rolled steel sheet and strip rose
1.2 percent following a 10.9-percent advance in May. Prices for hot rolled steel bars, plates, and
structural shapes and for semifinished steel mill products also increased less than a month earlier.
The indexes for primary nonferrous metals, copper and brass mill shapes, nonferrous wire and
cable, and refined lead turned down after advancing in the prior month. By contrast, the rise in
the index for hot rolled steel sheet and strip accelerated to 19.9 percent in June from 12.4 percent
in the previous month. The index for materials for durable manufacturing advanced at a 31.7-
percent SAAR in the 6 months ended June 2008 after decreasing at a 6.4-percent SAAR in the
second half of 2007.
The index for intermediate foods and feeds advanced 1.0 percent in June after moving up
3.2 percent in the prior month. The rise in the index for formula feeds (for poultry and livestock)
slowed to 1.1 percent from 3.9 percent in May. Prices for shortening and cooking oils also
increased less than a month earlier. The indexes for corn, cottonseed, and soybean cake and
meal and for pork turned down after moving higher in May. Conversely, the index for fluid milk
products advanced 3.5 percent in June following a 2.3-percent decrease in the preceding month.
Prices for dry, condensed, and evaporated milk products also turned up after declining in May.
The index for flour decreased less in June than in the previous month. Prices for natural,
processed, and imitation cheese moved up more than in May. The index for intermediate foods
and feeds advanced at a 27.3-percent SAAR for the 6 months ended June 2008 after climbing at
a 14.9-percent SAAR in the previous 6-month period.
The rise in the index for materials for nondurable manufacturing slowed to 2.7 percent in
June from 3.2 percent in the prior month. The index for primary basic organic chemicals
advanced 3.4 percent following a 7.5-percent jump in May. Prices for basic inorganic chemicals,
thermoplastic resins and materials, writing and printing papers, and newsprint also increased less
than in the previous month. The index for paint colors turned down after climbing in May. By
contrast, the index for fertilizer materials jumped 21.2 percent in June after advancing 5.9
percent in the preceding month. Prices for ethanol turned up after decreasing in May. The index
for materials for nondurable manufacturing rose at a 27.4-percent SAAR in the first half of 2008
after increasing at an 11.2-percent SAAR in the second half of 2007.
The index for materials and components for construction moved up 1.5 percent in June
after climbing 2.1 percent in the prior month. The rise in the index for structural, architectural,
and pre-engineered metal products slowed to 1.7 percent from 3.2 percent in May. Prices for
unfinished softwood lumber (not made from purchased materials) and for hot rolled steel bars,
plates, and structural shapes also increased less than in the prior month. The indexes for
nonferrous metals and unitary air conditioners turned down after advancing in May. By contrast,
the index for hot rolled steel sheet and strip surged 19.9 percent in June following a 12.4-percent
rise a month earlier. Prices for switchgear and switchboard apparatus and for precast concrete
products turned up after falling in May. The index for materials and components for
construction increased at a 13.2-percent SAAR in the first half of 2008 after edging up at a 0.8-
percent SAAR in the prior 6-month period.
The increase in the index for containers slowed to 0.3 percent in June from 0.5 percent in
the preceding month. The index for barrels, drums, and pails advanced 0.6 percent after rising
2.5 percent in May. Prices for paper, plastic, and foil bags also increased less than in the prior
month. The index for steel cans was unchanged in June following an advance a month earlier,
and prices for wood boxes turned down after rising in May. By contrast, the index for paper
boxes and containers advanced 0.3 percent after increasing 0.2 percent in the previous month.
Prices for glass containers turned up in June, and the index for aluminum cans was unchanged
following a May decline. During the first half of 2008, the index for containers climbed at a 5.5-
percent SAAR after rising at a 4.3-percent SAAR in the second half of 2007.
Crude goods
The Producer Price Index for Crude Materials for Further Processing increased 3.7
percent in June following a 6.7-percent advance in May. Prices for crude energy materials rose
less than they had in May. The index for crude nonfood materials less energy edged down after
climbing in the prior month. By contrast, partially offsetting the deceleration in prices for crude
goods, the index for crude foodstuffs and feedstuffs increased more than it had in May. (See
table B.)
Prices for crude energy materials moved up 5.4 percent in June following a 13.1-percent
jump a month earlier. The natural gas index rose 5.2 percent after surging 17.0 percent in May.
The rate of increase in prices for crude petroleum also slowed from May to June, rising 11.1
percent and 4.4 percent, respectively. Conversely, the coal index climbed 14.4 percent following
a 2.9-percent gain in May. (See table 2.) During the first half of 2008, the crude energy
materials index advanced at a 132.7-percent SAAR after rising at a 27.4-percent SAAR in the
previous 6-month period.
Prices for crude nonfood materials less energy inched down 0.2 percent in June after
increasing 5.0 percent in the preceding month. The copper base scrap index declined 5.3 percent
following a 1.3-percent gain in May. Prices for high grade wastepaper and for plant and animal
fibers also turned down in June. The index for carbon steel scrap rose less than in the previous
month. Prices for stainless and alloy steel scrap and for corrugated wastepaper fell more than
they had in May. By contrast, gold ore prices advanced 2.9 percent in June subsequent to a 23.0-
percent drop in the prior month. The index for soybeans also turned up in June. Prices for
phosphates and pulpwood rose more than they had in May. From December 2007 to June 2008,
the index for crude nonfood materials less energy increased at a 61.3-percent SAAR after
advancing at a 10.1-percent SAAR in the prior 6-month period.
Prices for crude foodstuffs and feedstuffs climbed 3.5 percent following a 1.8-percent
increase in May. The corn index jumped 12.2 percent following a 1.7-percent decline in the
prior month. Prices for fluid milk moved up in June after no change a month earlier. The
indexes for soybeans, ungraded chicken eggs, fresh vegetables (except potatoes), and sorghum
turned up after falling in the previous month. Wheat prices fell less than they had in May. By
contrast, prices for slaughter hogs decreased 3.4 percent after rising 18.1 percent in the preceding
month. The indexes for slaughter steers and heifers and for slaughter broilers and fryers also
turned down in June. The index for crude foodstuffs and feedstuffs increased at a 21.8-percent
SAAR in the first half of 2008 subsequent to rising at a 19.7-percent SAAR in the second half of
2007.
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 1.8 percent in
June from 2.3 percent in the prior month. (Net output price indexes are not seasonally adjusted.)
The index for the petroleum refining industry increased 5.8 percent after jumping 10.9 percent in
May. Prices received by the industries for crude petroleum and natural gas extraction and for
livestock slaughtering, as well as, for fabricated plastics for transportation products (excluding
foam and reinforced plastics) also rose less than in the previous month. By contrast, partially
offsetting the deceleration in the index for total mining, utilities, and manufacturing industries,
the index for the electric power generation industry turned up 5.5 percent in June after decreasing
2.9 percent a month earlier. Prices received by fluid milk manufacturers also rose following
May declines. The industry indexes for electric power distribution and phosphatic fertilizer
manufacturing increased more than in the preceding month. For the first 6 months of 2008, the
Producer Price Index for the Net Output of Total Mining, Utilities, and Manufacturing Industries
increased at a 19.9-percent annualized rate compared with a 3.3-percent annualized rate of
advance in the final half of 2007. In June 2008, the Producer Price Index for the Net Output of
Total Mining, Utilities, and Manufacturing Industries was 116.3 (December 2006 = 100), 11.3
percent above its year-ago level.
Trade Industries. The Producer Price Index for the Net Output of Total Trade Industries moved
up 0.7 percent in June after increasing 1.3 percent a month earlier. (Trade indexes measure
changes in margins received by wholesalers and retailers.) Higher margins received by merchant
wholesalers of durable goods, gasoline stations, non-discount department stores, family clothing
stores, specialty food stores, and jewelry stores outweighed lower margins received by merchant
wholesalers of nondurable goods and grocery stores. For the first half of 2008, the Producer
Price Index for the Net Output of Total Trade Industries increased at a 9.9-percent annualized
rate after falling at a 1.0-percent annualized rate in the second half of 2007. In June 2008, the
Producer Price Index for the Net Output of Total Trade Industries was 108.9 (December 2006 =
100), 4.3 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 2.3 percent in June
from 1.7 percent in the previous month. The index for the scheduled passenger air transportation
industry increased 5.8 percent after advancing 0.4 percent in May. Prices received by long-
distance general freight truckers, deep sea freight transporters, and line-haul railroads also rose
more than a month earlier. By contrast, the index for the U.S. Postal Service was unchanged in
June after increasing 2.8 percent in the prior month. Prices received by the industries for
couriers, local general freight trucking, and long distance specialized freight trucking of new
goods advanced less than in May. From December 2007 to June 2008, the Producer Price Index
for the Net Output of Total Transportation and Warehousing Industries climbed at a 16.4-percent
annualized rate following a 3.7-percent annualized rate of increase in the second half of 2007. In
June 2008, the Producer Price Index for the Net Output of Total Transportation and Warehousing
Industries was 115.0 (December 2006 = 100), 9.8 percent above its year-ago level.
Traditional Service Industries. The Producer Price Index for the Net Output of Total
Traditional Service Industries turned up 0.1 percent in June after decreasing 0.1 percent a month
earlier. The industry index for non-casino hotels and motels rose 4.5 percent following a 1.5-
percent decline in May. Prices received by investment bankers and securities dealers also turned
up after decreasing in the previous month. The industry indexes for commercial banking,
cellular and other wireless carriers, and offices of real estate agents and brokers declined less
than in May. By contrast, the industry index for savings institutions turned down 2.7 percent
after increasing 0.9 percent in the prior month. Prices received by portfolio managers rose less in
June, and the industry index for offices of physicians (excluding mental health) was unchanged
after rising in May. During the first half of 2008, the Producer Price Index for the Net Output of
Total Traditional Service Industries edged up at a 0.4-percent annualized rate following a 0.8-
percent annualized rate of increase from June to December 2007. In June 2008, the Producer
Price Index for the Net Output of Total Traditional Service Industries was 102.0, (December
2006 = 100), 0.6 percent above its year-ago level.
Producer Price Index (PPI) - June 2008 [PDF]
Source: Department of Labor, Bureau of Labor Statistics
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