Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 16-0946 
8:30 a.m. (EDT), Friday, May 13, 2016

Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov                                    


                             PRODUCER PRICE INDEXES - APRIL 2016


The Producer Price Index for final demand rose 0.2 percent in April, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.1 percent in 
March and 0.2 percent in February. On an unadjusted basis, the final demand index was 
unchanged for the 12 months ended in April. (See table A.)

In April, prices for final demand services edged up 0.1 percent, and the index for final demand 
goods advanced 0.2 percent.

The index for final demand less foods, energy, and trade services moved up 0.3 percent in April 
following no change in March. For the 12 months ended in April, prices for final demand less 
foods, energy, and trade services rose 0.9 percent.

Final Demand

Final demand services: The index for final demand services edged up 0.1 percent in April following 
a 0.2-percent decline in March. The increase can be traced to prices for final demand services less 
trade, transportation, and warehousing, which climbed 0.3 percent. In contrast, the indexes for final 
demand transportation and warehousing services and for final demand trade services decreased 0.4 
percent and 0.1 percent, respectively. 

Product detail: A major factor in the April advance in the index for final demand services was prices 
for portfolio management, which climbed 4.5 percent. The indexes for fuels and lubricants retailing, 
residential real estate loans (partial), chemicals and allied products wholesaling, and truck 
transportation of freight also increased. Conversely, prices for airline passenger services fell 1.7 
percent. The indexes for health, beauty, and optical goods retailing; machinery and equipment 
wholesaling; and services related to securities brokerage and dealing also moved lower. (See table 4.)

Final demand goods: The index for final demand goods advanced 0.2 percent in April, the same as 
in March. Most of the April rise can be traced to prices for final demand goods less foods and energy, 
which climbed 0.3 percent. The index for final demand energy moved up 0.2 percent. In contrast, 
prices for final demand foods declined 0.3 percent.

Product detail: A contributor to the April increase in prices for final demand goods was the index for 
carbon steel scrap, which jumped 22.1 percent. Prices for gasoline, electric power, pharmaceutical 
preparations, beef and veal, and prepared poultry also advanced. Conversely, prices for chicken eggs 
dropped 33.9 percent. The indexes for home heating oil and jet fuel also fell.

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
Month Total
final
demand
Final
demand
less
foods,
energy,
and
trade
Final demand goods Final demand services Change
in final
demand
from 12
months
ago
(unadj.)
Change
in final
demand
less
foods,
energy,
and
trade
from 12
mo. ago
(unadj.)
Total Foods Energy Less
foods
and
energy
Total Trade Transportation
and
warehousing
Other

2015

Apr.

0.0 0.2 -0.5 -0.9 -2.1 0.1 0.2 0.0 -0.3 0.4 -1.1 0.8

May

0.5 0.0 1.2 1.1 5.7 0.1 0.0 0.2 -0.1 -0.1 -0.8 0.7

June

0.3 0.3 0.5 0.4 0.7 0.4 0.3 0.3 0.2 0.3 -0.5 0.8

July

0.1 0.1 -0.3 -0.8 -0.7 0.0 0.3 0.6 -0.1 0.1 -0.7 0.9

Aug.

-0.2 0.0 -0.5 0.2 -2.6 -0.2 -0.1 -0.4 -0.9 0.2 -1.0 0.6

Sept.

-0.5 -0.1 -1.0 -0.3 -5.3 0.0 -0.1 0.2 0.0 -0.2 -1.1 0.5

Oct.

-0.2 -0.2 -0.3 -0.7 -0.2 -0.3 -0.2 -0.2 -0.1 -0.1 -1.4 0.4

Nov.

0.1 0.1 -0.1 -0.3 0.1 -0.1 0.1 0.1 0.1 0.1 -1.3 0.2

Dec.(1)

-0.1 0.1 -0.6 -0.9 -3.5 0.1 0.3 0.4 -0.8 0.2 -1.1 0.3

2016

Jan.(1)

0.2 0.3 -0.6 0.9 -4.7 0.1 0.6 1.1 0.6 0.5 -0.2 0.8

Feb.

-0.2 0.1 -0.6 -0.3 -3.4 0.1 0.0 -0.4 -0.7 0.3 0.0 0.9

Mar.

-0.1 0.0 0.2 -0.9 1.8 0.1 -0.2 -0.5 -0.3 -0.1 -0.1 0.9

Apr.

0.2 0.3 0.2 -0.3 0.2 0.3 0.1 -0.1 -0.4 0.3 0.0 0.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2015 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in April, prices for processed goods advanced 0.3 percent, the index for 
unprocessed goods rose 2.6 percent, and prices for services moved up 0.1 percent. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand increased 0.3 percent in April following nine straight declines. Over three-quarters of the 
advance can be traced to prices for processed materials less foods and energy, which rose 0.3 percent. 
The index for processed energy goods increased 0.5 percent. In contrast, prices for processed foods 
and feeds fell 0.3 percent. For the 12 months ended in April, the index for processed goods for 
intermediate demand declined 4.6 percent.

Product detail: A major factor in the April advance in prices for processed goods for intermediate 
demand was the index for primary basic organic chemicals, which rose 2.9 percent. Prices for 
gasoline, electric power, steel mill products, biological products, and meat and bone meal also moved 
higher. Conversely, the index for processed eggs dropped 15.5 percent. Prices for jet fuel and for 
paving mixtures and blocks also decreased. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand advanced 2.6 percent in April after increasing 2.5 percent in March. Most of the rise in April 
is attributable to prices for unprocessed energy materials, which jumped 9.0 percent. The index for 
unprocessed nonfood materials less energy moved up 3.5 percent. In contrast, prices for unprocessed 
foodstuffs and feedstuffs fell 1.9 percent. For the 12 months ended in April, the index for 
unprocessed goods for intermediate demand dropped 12.3 percent.

Product detail: Eighty percent of the April advance in prices for unprocessed goods for intermediate 
demand can be attributed to the index for crude petroleum, which rose 17.6 percent. Prices for carbon 
steel scrap, natural gas, slaughter hogs, copper ores, and oilseeds also moved higher. Conversely, the 
index for slaughter cattle declined 3.5 percent. Prices for corn and coal also fell.

Table B. Monthly and 12-month percent changes in selected intermediate demand price indexes for goods by commodity type, seasonally adjusted
Month Processed goods for intermediate demand Unprocessed goods for intermediate demand
Total Foods
and
feeds
Energy
goods
Less
foods
and
energy
Total,
change
from 12
months
ago
(unadj.)
Total Foodstuffs
and
feedstuffs
Energy
materials
Nonfood
materials
less
energy
Total,
change
from 12
months
ago
(unadj.)

2015

Apr.

-0.7 -1.5 -2.8 -0.2 -7.6 0.5 -0.1 1.2 -0.1 -26.3

May

0.8 0.4 4.5 0.0 -6.7 3.1 1.3 7.4 0.1 -23.0

June

0.5 1.7 1.7 0.0 -6.2 0.3 -0.3 1.5 0.2 -22.0

July

-0.3 0.2 -1.0 -0.1 -6.5 -3.5 -2.1 -6.3 -1.5 -23.2

Aug.

-0.8 -0.5 -2.2 -0.5 -7.2 -3.5 0.8 -8.4 -3.9 -23.7

Sept.

-1.3 -1.8 -4.3 -0.5 -8.3 -2.2 -4.3 -1.0 -0.2 -25.7

Oct.

-0.4 -0.7 -1.0 -0.3 -7.7 -1.3 -1.4 -0.4 -2.3 -24.0

Nov.

-0.5 -0.9 -1.1 -0.2 -7.2 -4.3 -2.3 -7.6 -3.7 -26.4

Dec.(1)

-1.1 -2.0 -4.0 -0.4 -6.6 -3.9 -3.0 -7.2 -0.9 -25.3

2016

Jan.(1)

-1.0 -0.4 -4.0 -0.4 -5.4 -0.2 4.7 -7.5 -0.2 -17.9

Feb.

-0.7 0.1 -2.9 -0.4 -5.6 -2.1 -2.4 -3.2 0.3 -16.8

Mar.

-0.2 -0.6 0.0 -0.1 -5.5 2.5 -0.1 6.1 2.1 -14.1

Apr.

0.3 -0.3 0.5 0.3 -4.6 2.6 -1.9 9.0 3.5 -12.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2015 have been revised to reflect the availability of late reports and corrections by respondents.

Services for intermediate demand: The index for services for intermediate demand inched up 0.1 
percent in April following a 0.3-percent decline in March. Leading the advance, prices for services 
less trade, transportation, and warehousing for intermediate demand increased 0.1 percent. In 
addition, the index for trade services for intermediate demand rose 0.4 percent. In contrast, prices for 
transportation and warehousing services for intermediate demand fell 0.5 percent. For the 12 months 
ended in April, the index for services for intermediate demand moved up 0.9 percent.

Product detail: A major contributor to the rise in prices for services for intermediate demand was the 
index for business loans (partial), which climbed 0.9 percent. The indexes for portfolio management, 
chemicals and allied products wholesaling, passenger car rental, and truck transportation of freight 
also moved higher. Conversely, prices for U.S. postal services fell 3.5 percent. The indexes for 
services related to securities brokerage and dealing; legal services; and hardware, building materials, 
and supplies retailing also decreased.

Table C. Monthly and 12-month percent changes in selected intermediate demand price indexes for services by commodity type, seasonally adjusted
Month Services for intermediate demand
Total Trade Transportation
and
warehousing
Other Total, change
from 12 months
ago (unadj.)

2015

Apr.

0.5 -0.2 0.0 0.7 1.9

May

-0.1 1.1 0.1 -0.6 1.8

June

0.1 -0.4 0.4 0.3 1.7

July

0.3 1.0 0.2 0.1 1.4

Aug.

0.2 -0.8 -0.3 0.6 1.6

Sept.

-0.5 -0.1 -0.2 -0.8 1.1

Oct.

-0.5 -0.3 -0.1 -0.6 0.2

Nov.

0.1 -0.4 0.1 0.2 0.4

Dec.(1)

0.2 -1.0 -0.2 0.6 0.5

2016

Jan.(1)

1.2 0.4 -0.5 1.8 1.5

Feb.

0.3 0.0 -0.2 0.4 1.9

Mar.

-0.3 -1.1 -0.2 0.0 1.4

Apr.

0.1 0.4 -0.5 0.1 0.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2015 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand advanced 0.3 percent in 
April following two straight declines. In April, prices for total services inputs to stage 4 intermediate 
demand climbed 0.4 percent, and the index for total goods inputs rose 0.2 percent. (See table D.) 
Increases in the indexes for portfolio management, electric power, chemicals and allied products 
wholesaling, biological products, gasoline, and ready-mix concrete outweighed falling prices for 
services related to securities brokerage and dealing, U.S. postal services, and paving mixtures and 
blocks. (See table 6.) For the 12 months ended in April, the index for stage 4 intermediate demand 
moved down 0.9 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand edged down 0.1 percent 
in April following no change in March. In April, prices for total goods inputs to stage 3 intermediate 
demand decreased 0.3 percent, while the index for total services inputs was unchanged. Lower prices 
for jet fuel, slaughter cattle, U.S. postal services, ungraded chicken eggs, and services related to 
securities brokerage and dealing outweighed increases in the indexes for gasoline, slaughter hogs, 
primary basic organic chemicals, and chemicals and allied products wholesaling. For the 12 months 
ended in April, the index for stage 3 intermediate demand fell 4.1 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand climbed 0.9 percent in 
April after rising 0.5 percent in March. In April, prices for total goods inputs to stage 2 intermediate 
demand jumped 2.5 percent. In contrast, the index for total services inputs fell 0.2 percent. Higher 
prices for crude petroleum, natural gas, portfolio management, steel mill products, thermoplastic 
resins and materials, and carbon steel scrap outweighed decreases in the indexes for services related 
to securities brokerage and dealing, U.S. postal services, and non-corrugated paperboard. For the 12 
months ended in April, the index for stage 2 intermediate demand moved down 3.0 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand rose 0.7 percent in April 
following no change in March. In April, prices for total goods inputs to stage 1 intermediate demand 
advanced 1.1 percent, and the index for total services inputs moved up 0.3 percent. Increases in the 
indexes for carbon steel scrap, primary basic organic chemicals, crude petroleum, electric power, 
chemicals and allied products wholesaling, and portfolio management outweighed lower prices for 
services related to securities brokerage and dealing, diesel fuel, and airline passenger services. For 
the 12 months ended in April, the index for stage 1 intermediate demand dropped 4.4 percent.

Table D. Monthly percent changes in selected intermediate demand price indexes by production flow, seasonally adjusted
Month Stage 4 intermediate
demand
Stage 3 intermediate
demand
Stage 2 intermediate
demand
Stage 1 intermediate
demand
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs

2015

Apr.

0.0 -0.5 0.5 -0.3 -0.9 0.5 0.2 -0.2 0.7 -0.4 -1.1 0.4

May

0.3 0.6 0.0 1.2 2.3 0.0 0.8 2.1 -0.2 0.7 1.4 -0.2

June

0.2 0.3 0.0 0.3 0.4 0.1 0.3 0.3 0.2 0.5 0.6 0.1

July

0.0 -0.2 0.2 -0.4 -1.0 0.3 -0.7 -2.0 0.5 -0.2 -0.5 0.3

Aug.

-0.2 -0.4 0.2 -0.5 -1.1 0.2 -1.1 -3.0 0.3 -1.1 -1.7 -0.1

Sept.

-0.5 -0.8 -0.5 -1.8 -3.0 -0.4 -0.8 -1.2 -0.6 -1.5 -2.3 -0.6

Oct.

-0.3 -0.2 -0.5 -0.6 -1.0 -0.4 -0.4 -0.2 -0.6 -0.8 -0.9 -0.6

Nov.

-0.1 -0.2 0.2 -0.4 -0.7 0.0 -1.2 -2.9 0.0 -0.8 -1.4 0.0

Dec.(1)

-0.4 -0.8 0.0 -0.9 -2.1 0.2 -0.5 -2.4 0.7 -1.4 -2.2 -0.4

2016

Jan.(1)

0.3 -0.3 1.0 0.1 -0.6 0.9 -0.5 -2.8 1.1 0.1 -1.1 1.5

Feb.

-0.1 -0.4 0.1 -0.9 -2.1 0.3 -0.3 -1.4 0.5 -0.6 -1.2 0.1

Mar.

-0.3 -0.1 -0.5 0.0 0.3 -0.3 0.5 1.3 0.1 0.0 0.5 -0.6

Apr.

0.3 0.2 0.4 -0.1 -0.3 0.0 0.9 2.5 -0.2 0.7 1.1 0.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2015 have been revised to reflect the availability of late reports and corrections by respondents.

_____________
The Producer Price Index for May 2016 is scheduled to be released on Wednesday, June 15, 
2016 at 8:30 a.m. (EDT).



The PDF version of the news release

Supplemental Files Table of Contents

Table of Contents

Last Modified Date: May 13, 2016