Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 16-1456 
8:30 a.m. (EDT), Thursday, July 14, 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 - JUNE 2016


The Producer Price Index for final demand increased 0.5 percent in June, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.4 percent in May and 
0.2 percent in April. On an unadjusted basis, the final demand index advanced 0.3 percent for the 
12 months ended in June, the largest 12-month increase since moving up 0.9 percent in 
December 2014. (See table A.)

In June, the advance in the final demand index was led by prices for final demand services, 
which rose 0.4 percent. The index for final demand goods advanced 0.8 percent.

Prices for final demand less foods, energy, and trade services rose 0.3 percent in June after 
declining 0.1 percent in May. For the 12 months ended in June, the index for final demand less 
foods, energy, and trade services increased 0.9 percent. 

Final Demand

Final demand services: The index for final demand services advanced 0.4 percent in June, the third 
consecutive rise. The broad-based June increase was led by prices for final demand services less 
trade, transportation, and warehousing, which also moved up 0.4 percent. The indexes for final 
demand trade services and for final demand transportation and warehousing services rose 0.7 percent 
and 0.5 percent, respectively. (Trade indexes measure changes in margins received by wholesalers 
and retailers.)

Product detail: A major factor in the increase in prices for final demand services was the index for 
services related to securities brokerage and dealing, which rose 7.7 percent. The indexes for 
automotive fuels and lubricants retailing; machinery, equipment, parts, and supplies wholesaling; 
traveler accommodation services; airline passenger services; and health, beauty, and optical goods 
retailing also increased. In contrast, margins for apparel, footwear, and accessories retailing declined 
2.6 percent. The indexes for long-distance motor carrying and residential real estate loans (partial) 
also fell. (See table 4.)

Final demand goods: The index for final demand goods advanced 0.8 percent in June, the largest 
rise since a 1.2-percent jump in May 2015. Over three-quarters of the June increase can be traced to 
prices for final demand energy, which climbed 4.1 percent. The index for final demand foods moved 
up 0.9 percent. Prices for final demand goods less foods and energy were unchanged.

Product detail: Nearly half of the increase in the index for final demand goods is attributable to 
gasoline prices, which climbed 9.9 percent. Prices for meats, jet fuel, electric power, home heating 
oil, and cigarettes also moved higher. Conversely, the index for chicken eggs dropped 29.9 percent. 
Prices for carbon steel scrap and residential natural gas also decreased. 

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

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.

-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.

0.4 0.3 -0.5 0.9 -4.3 0.1 0.9 1.7 0.5 0.6 0.0 0.8

Feb.(1)

-0.3 0.1 -0.7 0.1 -4.9 0.0 -0.1 -0.5 -0.3 0.1 0.1 0.9

Mar.(1)

-0.2 0.0 0.3 -1.4 2.9 0.2 -0.4 -1.0 -0.6 0.0 -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

May

0.4 -0.1 0.7 0.3 2.8 0.3 0.2 1.2 -0.6 -0.2 -0.1 0.8

June

0.5 0.3 0.8 0.9 4.1 0.0 0.4 0.7 0.5 0.4 0.3 0.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2016 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in June, prices for processed goods increased 0.9 percent, the index for 
unprocessed goods rose 2.8 percent, and prices for services climbed 0.8 percent. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved up 0.9 percent in June, the largest advance since a 0.9-percent rise in January 2014. 
About 70 percent of the broad-based increase in June can be traced to prices for processed energy 
goods, which jumped 4.0 percent. The indexes for processed materials less foods and energy and for 
processed foods and feeds moved up 0.2 percent and 1.7 percent, respectively. For the 12 months 
ended in June, prices for processed goods for intermediate demand fell 4.1 percent, the smallest 12-
month decrease since a 2.6-percent decline in December 2014.

Product detail: Contributing to the June advance in the index for processed goods for intermediate 
demand, electric power prices increased 1.4 percent. The indexes for gasoline, diesel fuel, prepared 
animal feeds, jet fuel, and basic organic chemicals also moved higher. In contrast, prices for 
processed eggs dropped 30.9 percent. The indexes for automotive job stampings and natural gas to 
electric utilities also decreased. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand climbed 2.8 percent in June, the fourth consecutive rise. Most of the increase in June can be 
traced to an 8.5-percent advance in prices for unprocessed energy goods. The index for unprocessed 
foodstuffs and feedstuffs moved up 0.4 percent. Conversely, prices for unprocessed nonfood 
materials less energy declined 0.3 percent. For the 12 months ended in June, the index for 
unprocessed goods for intermediate demand fell 11.4 percent, the smallest 12-month decrease since 
an 8.7-percent decline in December 2014.

Product detail: Ninety percent of the June increase in prices for unprocessed goods for intermediate 
demand is attributable to the index for crude petroleum, which surged 17.0 percent. Prices for 
slaughter poultry; corn; hay, hayseeds, and oilseeds; coal; and hides and skins also moved higher. In 
contrast, the index for carbon steel scrap dropped 6.6 percent. Prices for slaughter steers and heifers 
and for natural gas also declined.

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

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

2016

Jan.

-0.9 -0.7 -3.4 -0.4 -5.3 0.2 4.8 -6.0 -0.5 -17.5

Feb.(1)

-0.9 0.6 -4.8 -0.3 -5.8 -1.9 -1.0 -5.7 0.6 -16.4

Mar.(1)

0.0 -0.8 1.3 -0.2 -5.5 1.9 -1.6 7.2 2.0 -14.1

Apr.

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

May

0.8 1.1 2.7 0.5 -4.6 1.3 0.1 0.9 4.2 -13.7

June

0.9 1.7 4.0 0.2 -4.1 2.8 0.4 8.5 -0.3 -11.4

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2016 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 rose 0.8 percent 
in June, the largest increase since a 1.3-percent jump in January. Accounting for 70 percent of the 
advance in June, prices for services less trade, transportation, and warehousing for intermediate 
demand climbed 0.8 percent. The indexes for trade services for intermediate demand and for 
transportation and warehousing services for intermediate demand rose 1.1 percent and 0.4 percent, 
respectively. For the 12 months ended in June, prices for services for intermediate demand advanced 
1.6 percent. 

Product detail: A major factor in the increase in the index for services for intermediate demand was 
prices for loan services (partial), which advanced 1.7 percent. The indexes for services related to 
securities brokerage and dealing; machinery and equipment parts and supplies wholesaling; metals, 
minerals, and ores wholesaling; portfolio management; and airline passenger services also moved 
higher. Conversely, margins for chemicals and allied products wholesaling fell 3.6 percent. The 
indexes for staffing services and long-distance motor carrying also declined.

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

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.

0.2 -1.0 -0.2 0.6 0.5

2016

Jan.

1.3 0.5 -0.5 1.9 1.5

Feb.(1)

0.2 -0.3 0.0 0.3 1.9

Mar.(1)

-0.3 -0.9 -0.3 0.0 1.4

Apr.

0.1 0.4 -0.5 0.1 0.9

May

-0.2 0.3 0.0 -0.4 0.9

June

0.8 1.1 0.4 0.8 1.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2016 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 increased 0.7 percent in 
June, the largest rise since jumping 0.8 percent in April 2011. In June, prices for total services inputs 
to stage 4 intermediate demand advanced 0.8 percent, and the index for total goods inputs climbed 
0.7 percent. (See table D.) Increases in the indexes for machinery and equipment parts and supplies 
wholesaling, services related to securities brokerage and dealing, diesel fuel, portfolio management, 
gasoline, and electric power outweighed declines in the indexes for chemical and allied products 
wholesaling, staffing services, and automotive job stampings. (See table 6.) For the 12 months ended 
in June, prices for stage 4 intermediate demand moved down 0.5 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand increased 0.9 percent in 
June, the largest rise since a 1.2-percent jump in May 2015. In June, prices for total goods inputs to 
stage 3 intermediate demand advanced 1.2 percent, and prices for total services inputs moved up 0.7 
percent. Rising indexes for gasoline, slaughter poultry, jet fuel, services related to securities 
brokerage and dealing, machinery and equipment parts and supplies wholesaling, and diesel fuel 
outweighed decreases in the indexes for slaughter steers and heifers, raw milk, and chemicals and 
allied products wholesaling. For the 12 months ended in June, prices for stage 3 intermediate demand 
decreased 4.2 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 1.5 percent in 
June, the largest advance since a 3.5-percent jump in February 2014. In June, prices for total goods 
inputs to stage 2 intermediate demand rose 2.9 percent, and the index for total services inputs moved 
up 0.6 percent. Higher prices for crude petroleum; services related to securities brokerage and 
dealing; prepared animal feeds; hay, hayseeds, and oilseeds; corn; and portfolio management 
outweighed decreases in the indexes for staffing services; hot rolled steel bars, plates, and structural 
shapes; and carbon steel scrap. For the 12 months ended in June, the index for stage 2 intermediate 
demand fell 1.9 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand increased 1.2 percent in 
June, the largest advance since a 1.5-percent rise in January 2014. In June, prices for both total goods 
and total services inputs to stage 1 intermediate demand moved up 1.2 percent. Higher prices for 
diesel fuel, basic organic chemicals, services related to securities brokerage and dealing, crude 
petroleum, gasoline, and corn outweighed decreases in the indexes for carbon steel scrap; chemicals 
and allied products wholesaling; and truck, trailer, and bus rental. For the 12 months ending in June, 
prices for stage 1 intermediate demand moved down 3.4 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

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.

-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.

0.3 -0.3 1.0 0.1 -0.5 0.9 -0.3 -2.3 1.3 0.1 -1.2 1.5

Feb.(1)

-0.1 -0.4 0.1 -0.8 -2.0 0.3 -0.6 -2.0 0.2 -0.8 -1.4 0.1

Mar.(1)

-0.3 -0.1 -0.5 -0.1 0.1 -0.3 0.6 1.3 0.2 0.2 0.8 -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

May

0.1 0.4 -0.2 0.4 0.8 -0.1 0.7 1.9 -0.1 1.0 2.2 -0.6

June

0.7 0.7 0.8 0.9 1.2 0.7 1.5 2.9 0.6 1.2 1.2 1.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2016 have been revised to reflect the availability of late reports and corrections by respondents.

_____________
The Producer Price Index for July 2016 is scheduled to be released on Friday, August, 12, 2016 
at 8:30 a.m. (EDT).

                                                 *****

                                       Resampling of Industries

Effective with the release of data for June 2016, the Producer Price Index (PPI) includes data for 
19 resampled industries classified according to the 2012 North American Industry Classification 
System (NAICS). The Bureau of Labor Statistics periodically updates the sample of producers 
providing data for the PPI to reflect current conditions more accurately when the structure, 
membership, technology, or product mix of an industry shifts. The first results of this systematic 
process were published in July 1986. Subsequent efforts have been completed at regular 
intervals.  
      
For information on specific index additions, deletions, and recodes effective June 2016, see the 
current issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201606.pdf, or contact 
the PPI's Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-
7705.

NAICS
Code                    Industry
236211        New industrial building construction
311991        Perishable prepared food manufacturing
315190        Other apparel knitting mills
324191        Petroleum lubricating oil and grease manufacturing
325320        Pesticide and other agricultural chemical manufacturing
325613        Surface active agent manufacturing
332311        Prefabricated metal building and component manufacturing
332321        Metal window and door manufacturing
332510        Hardware manufacturing
332613        Spring manufacturing
332812        Metal coating and nonprecious engraving
333618        Other engine equipment manufacturing
333992        Welding and soldering equipment manufacturing
335220        Major household appliance manufacturing*
336510        Railroad rolling stock manufacturing
336999        All other transportation equipment manufacturing
339991        Gasket, packing, and sealing device manufacturing
519130        Internet publishing and web search portals
713110        Amusement and theme parks

* This industry encompasses data previously published under NAICS codes 335221, 335222, 
335224, and 335228.

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Last Modified Date: July 14, 2016