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http://www.bls.gov/ppi APRIL 15, 2008
Producer Price Indexes - March 2008
The Producer Price Index for Finished Goods increased 1.1 percent in March, seasonally
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This
advance followed a 0.3-percent rise in February and a 1.0-percent increase in January. At the
earlier stages of processing, prices received by producers of intermediate goods rose 2.3 percent
after increasing 0.8 percent a month earlier, and the crude goods index advanced 8.0 percent
following a 3.7-percent rise in February. (See table A.)
Table A. Monthly and annual percent changes in selected stage-of-processing price
indexes, seasonally adjusted
______________________________________________________________________________________
| | | | |
| | Finished goods | | |
| | | | |
| |---------------------------------------------------------| | |
| | | | | | Change in | | |
| | | | | Except |finished goods| Inter- | |
| | | | |foods and|from 12 months| mediate | Crude |
| Month | Total | Foods | Energy | energy | ago(unadj.) | goods | goods |
|--------------------------------------------------------------------------------------|
2007
Mar. 0.9 1.5 3.2 -0.1 3.1 1.0 2.5
Apr. .7 .5 2.6 .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 r -.2 11.7 r .3 r 7.3 r 2.9 r 6.8
Dec. r -.4 r 1.2 -3.0 r .1 6.3 r -.1 r 2.4
2008
Jan. 1.0 1.7 1.5 .4 7.4 1.4 2.5
Feb. .3 -.5 .8 .5 6.4 .8 3.7
Mar. 1.1 1.2 2.9 .2 6.9 2.3 8.0
r=revised. Some of the figures shown above and elsewhere in this release may differ
from those previously reported because data for November 2007 have been revised to
reflect the availability of late reports and corrections by respondents.
-2-
Among finished goods, the increase in the index for energy goods accelerated to 2.9
percent in March from 0.8 percent in the preceding month. Prices for finished consumer foods
turned up 1.2 percent after declining 0.5 percent in February. By contrast, partially offsetting the
acceleration in finished goods prices, the rise in the index for finished goods less foods and
energy slowed to 0.2 percent from 0.5 percent in February.
During the first quarter of 2008, the finished goods index rose at a 10.2-percent
seasonally adjusted annual rate (SAAR), after climbing at an 11.5-percent SAAR during the
fourth quarter of 2007. Much of this slower rate of increase can be traced to prices for finished
energy goods, which moved up at a 22.5-percent SAAR for the 3 months ended in March after
jumping at a 44.1-percent SAAR for the 3 months ended in December. By contrast, prices for
finished goods less foods and energy increased at a 5.0-percent SAAR during the first quarter of
2008 after rising at a 2.2-percent SAAR during the fourth quarter of 2007. The index for
finished consumer foods increased at a 10.1-percent SAAR for the 3 months ended in March
after advancing at a 9.6-percent SAAR for the 3 months ended in December. At the earlier
stages of processing, the intermediate goods index moved up at a 19.4-percent SAAR during the
first quarter of 2008 after increasing at a 14.5-percent SAAR during the fourth quarter of 2007,
and prices for crude goods surged at a 73.4-percent SAAR for the 3 months ended in March after
jumping at a 67.7-percent SAAR for the 3 months ended in December. (See summary table.)
Summary of December-to-December and 3-month seasonally adjusted annual rates of
change in price indexes at selected stages of process
___________________________________________________________________________________
| | Percentage | |
| | change 12 | Seasonally adjusted annual |
| | months ended | rate for 3 months ended |
| Grouping | in December |-----------------------------|
| |--------------------| June | Sep. | Dec. | Mar. |
| | 2005 | 2006 | 2007 | 2007 | 2007 | 2007 | 2008 |
|-----------------------------------------------------------------------------------|
Finished goods 5.4 1.1 6.3 5.5 1.0 11.5 10.2
Finished consumer foods 1.7 1.7 7.4 -1.2 4.4 9.6 10.1
Finished energy goods 23.9 -2.0 18.4 22.9 -3.3 44.1 22.5
Finished goods less foods
and energy 1.4 2.0 2.0 2.5 1.5 2.2 5.0
Finished consumer goods,
excluding foods and energy 1.6 1.8 2.5 3.1 1.9 2.6 5.5
Capital equipment 1.2 2.3 1.3 1.6 .5 1.6 4.3
Intermediate materials,
supplies, and components 8.6 2.8 6.8 10.4 -.9 14.5 19.4
Intermediate foods and feeds 2.4 4.7 17.5 11.7 10.2 20.7 39.6
Intermediate energy goods 26.2 -3.3 18.6 23.7 -5.3 50.6 46.4
Intermediate materials less
foods and energy 4.8 4.5 3.3 6.9 0 4.6 10.7
Materials for nondurable
manufacturing 8.9 1.2 13.0 21.3 2.6 21.0 19.8
Materials for durable
manufacturing 5.9 12.5 1.6 19.0 -10.6 -2.3 26.5
Materials and components
for construction 6.1 4.3 1.8 3.8 .4 .4 7.9
Crude materials for further
processing 21.1 -4.7 20.6 12.2 -8.9 67.7 73.4
Foodstuffs and feedstuffs 1.6 2.8 25.2 8.6 9.3 32.5 23.8
Crude energy materials 42.2 -15.7 17.2 26.5 -27.0 129.9 120.7
Crude nonfood materials
less energy 5.2 17.0 16.8 -4.0 14.9 10.1 52.6
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.
-3-
Before seasonal adjustment, the Producer Price Index for Finished Goods climbed 1.9
percent in March to 175.4 (1982 = 100). From March 2007 to March 2008, finished goods
prices rose 6.9 percent. Over the same period, the index for finished energy goods increased
20.4 percent, prices for finished consumer foods moved up 5.8 percent, and the index for
finished goods less foods and energy advanced 2.7 percent. For the 12 months ended in March,
prices received by manufacturers of intermediate goods rose 10.5 percent, and the crude goods
index advanced 31.4 percent.
Finished goods
The rise in the finished energy goods index accelerated to 2.9 percent from 0.8 percent in
February. Over half of this acceleration can be attributed to the liquefied petroleum gas index,
which turned up 4.2 percent in March after dropping 9.7 percent a month earlier. Prices for
home heating oil, residential electric power, and kerosene also moved up after falling in the
preceding month. The indexes for diesel fuel and asphalt advanced more in March than in the
prior month. Conversely, partially offsetting the acceleration in finished energy goods prices, the
rise in the index for gasoline slowed to 1.3 percent from 2.9 percent in February. Prices for
residential natural gas also advanced less than a month earlier. (See table 2.)
Table B. Monthly and annual percent changes in selected price indexes for
intermediate goods and crude goods, seasonally adjusted
__________________________________________________________________________________
| | | |
| | Intermediate goods | Crude goods |
| | | |
| |---------------------------------------------------------------------------|
| | | | |Change in | | | | Change |
| | | | | interme- | | | |in crude |
| | | | | diate | | | | goods |
| | | | |goods from| | | | from 12 |
| | | | Except |12 months | | | Except | months |
| | | |foods and| ago | | |foods and| ago |
|Month | Foods | Energy | energy | (unadj.) | Foods | Energy | energy |(unadj.) |
|----------------------------------------------------------------------------------|
2007
Mar. 1.7 3.1 0.4 3.3 2.3 0.3 6.9 13.3
Apr. .9 1.9 .8 3.7 1.3 .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. r 1.4 r 10.4 .8 r 7.9 r 2.9 r 12.3 r -.9 r 20.9
Dec. r 2.2 r -.9 0 6.8 r 4.4 r 1.3 r 1.9 20.6
2008
Jan. 3.3 2.8 .8 8.8 2.7 1.8 4.0 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
r=revised. Some of the figures shown above and elsewhere in this release may
differ from those previously reported because data for November 2007 have been
revised to reflect the availability of late reports and corrections by respondents.
-4-
The index for finished consumer foods turned up 1.2 percent in March following a 0.5-
percent decrease in February. The index for fresh and dry vegetables jumped 15.4 percent in
March after dropping 15.7 percent in the previous month. Prices for processed young chickens
also turned up in March after falling in the prior month. The index for fresh fruits and melons
fell less than in February. Prices for beef and veal and for shortening and cooking oils advanced
more than a month earlier. By contrast, the index for soft drinks turned down 0.8 percent after
rising 0.5 percent in February. Prices for eggs for fresh use also fell in March after advancing in
the preceding month, and the index for pork decreased more than in February.
The index for finished goods less foods and energy climbed 0.2 percent after rising 0.5
percent in February. The rise in the index for pharmaceutical preparations slowed to 0.4 percent
in March from 1.3 percent in the prior month. Prices for sanitary paper and health products,
alcoholic beverages, civilian aircraft, and pet food also increased less than in February. The
indexes for light motor trucks and passenger cars turned down in March after rising in the prior
month. By contrast, the index for soaps and synthetic detergents rose 2.0 percent following a
0.1-percent advance in February.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components rose 2.3
percent in March subsequent to a 0.8-percent increase in the prior month. This price acceleration
was broad based as the indexes for intermediate energy goods, materials for both durable and
nondurable manufacturing, intermediate foods and feeds, and materials and components for
construction all rose more in March. Prices for intermediate materials less foods and energy
moved up 1.1 percent after advancing 0.6 percent in February. (See table B.)
The intermediate energy goods index climbed 5.9 percent in March following a 1.1-
percent gain in the previous month. Leading this acceleration, the index for diesel fuel surged
15.3 percent after rising 0.9 percent in February. Prices for jet fuel, residual fuel, liquefied
petroleum gas, electric power, and home heating oil turned up in March. By contrast, slightly
offsetting the acceleration in the intermediate energy goods index, gasoline prices advanced 1.3
percent compared with a 2.9-percent rise in February. The index for utility natural gas also rose
less than it had in the prior month. (See table 2.) The intermediate energy goods index advanced
at a 46.4-percent SAAR from December 2007 to March 2008 after moving up at a 50.6-percent
SAAR during the final quarter of 2007.
Prices for materials for durable manufacturing increased 3.8 percent in March subsequent
to a 1.6-percent rise in the preceding month. The cold rolled steel sheet and strip index advanced
7.6 percent following a 4.2-percent decline a month earlier. Prices for hot rolled steel sheet and
strip, aluminum mill shapes, nonferrous wire and cable, secondary aluminum, and copper and
brass mill shapes advanced at faster rates compared with the prior month. By contrast, the index
for prepared paint decreased 1.5 percent after rising 1.7 percent in February. Prices for
semifinished steel mill products and for hot rolled steel bars, plates, and structural shapes
increased less than they had a month earlier. From December 2007 to March 2008, prices for
materials for durable manufacturing advanced at a 26.5-percent SAAR after moving down at a
2.3-percent SAAR in the prior quarter.
The index for materials for nondurable manufacturing rose 1.5 percent following a 0.9-
percent increase in February. Prices for basic organic chemicals moved up 2.0 percent after
declining 0.5 percent a month earlier. The phosphates index also turned up in March. Prices for
inedible fats and oils, paper, and paint materials increased more than they had in February. By
contrast, the nitrogenates index decreased 2.0 percent compared with a 14.3-percent advance in
the preceding month. Prices for plastic resins and materials, medicinal and botanical chemicals,
and woodpulp also turned down in March. The index for materials for nondurable
manufacturing advanced at a 19.8-percent SAAR for the 3 months ended March 2008 after
climbing at a 21.0-percent SAAR in the previous quarter.
-5-
Prices for intermediate foods and feeds moved up 2.9 percent in March following a 2.3-
percent increase in the prior month. The beef and veal index rose 4.0 percent subsequent to a
0.6-percent gain in February. Prices for shortening and cooking oils and for prepared animal
feeds also advanced more than they had in the previous month. The indexes for natural,
processed, and imitation cheese and for processed young chickens turned up in March. By
contrast, the flour index increased 6.2 percent following a 15.2-percent climb in the preceding
month. Prices for fluid milk products and pork declined more than they had in February. The
index for intermediate foods and feeds increased at a 39.6-percent SAAR in the first quarter of
2008 after rising at a 20.7-percent SAAR in the final quarter of 2007.
Prices for materials and components for construction increased 0.8 percent in March after
moving up 0.7 percent in the prior month. In March, higher prices for nonferrous wire and cable,
fabricated structural metal products, steel mill products, fabricated ferrous wire products, asphalt
felts and coatings, and concrete products more than offset lower prices for plastic construction
products and for plumbing fixtures and brass fittings. The index for materials and components
for construction advanced at a 7.9-percent SAAR in the first quarter of 2008 after edging up at a
0.4-percent SAAR in the prior quarter.
Crude goods
The Producer Price Index for Crude Materials for Further Processing climbed 8.0 percent
in March following a 3.7-percent increase in February. Most of this acceleration can be traced to
the index for crude energy materials, which surged in March after rising at a slower rate a month
earlier. Prices for crude foodstuffs and feedstuffs and for crude nonfood materials less energy
also moved up more than they had in February. (See table B.)
The index for crude energy materials jumped 13.4 percent in March following a 5.6-
percent advance in the preceding month. This faster rate of increase is attributable to prices for
crude petroleum, which surged 17.5 percent after rising 0.6 percent in February. By contrast,
partially offsetting the acceleration in the index for crude energy goods, the coal index fell 0.9
percent in March subsequent to a 1.0-percent gain in the prior month. Natural gas prices moved
up slightly less than they had in February - 11.4 percent compared with 11.5 percent. (See table
2.) During the first quarter of 2008, the index for crude energy materials increased at a 120.7-
percent SAAR after advancing at a 129.9-percent SAAR in the fourth quarter of 2007.
The index for crude foodstuffs and feedstuffs increased 2.0 percent in March following a
0.7-percent rise in the previous month. Corn prices jumped 14.5 percent after declining 1.9
percent in February. The indexes for fresh vegetables (excluding potatoes), slaughter broilers
and fryers, and raw cane sugar and byproducts also turned up in March. Prices for fresh fruits
and melons fell less than they had in February. Conversely, price advances for wheat slowed to
0.6 percent in March following a 19.2-percent surge a month earlier. The indexes for slaughter
cattle, slaughter hogs, and Irish potatoes for processing turned down after increasing in February.
Prices for crude foodstuffs and feedstuffs climbed at a 23.8-percent SAAR for the 3 months
ended in March after rising at a 32.5-percent SAAR for the 3 months ended in December.
The index for crude nonfood materials less energy advanced 3.5 percent in March
compared with a 3.3-percent rise a month earlier. In March, higher prices for nonferrous metal
ores; nonferrous scrap; iron and steel scrap; construction sand, gravel, and crushed stone;
wastepaper; phosphates; raw cotton; and pulpwood outweighed lower prices for softwood logs,
bolts, and timber. During the first quarter of 2008, the index for crude nonfood materials less
energy increased at a 52.6-percent SAAR after moving up at a 10.1-percent SAAR in the fourth
quarter of 2007.
-6-
Net output price indexes
Mining, Utilities, and Manufacturing Industries. The Producer Price Index for the Net Output
of Total Mining, Utilities, and Manufacturing Industries rose 2.3 percent in March following a
0.7-percent increase in February. (Net output price indexes are not seasonally adjusted.) Prices
received by the petroleum and coal products industry group jumped 13.2 percent after increasing
0.6 percent in the prior month. The indexes for oil and gas extraction and for manufacturers of
food, electrical equipment and appliances, and fabricated metal products also rose more than
they had in February. Prices for electric power distribution turned up in March. By contrast,
slightly counteracting the acceleration in the index for total mining, utilities, and manufacturing
industries, prices for the transportation equipment industry group fell 0.3 percent in March
following a 0.4-percent gain a month earlier. The indexes for electric power generation and for
beverage and tobacco manufacturers also turned down in March. Prices received by the
chemical manufacturing industry group rose less than they had in February. For the first 3
months of 2008, the Producer Price Index for the Net Output of Total Mining, Utilities, and
Manufacturing Industries advanced at a 16.4-percent annualized rate compared with a 7.1-
percent annualized rate of increase in the final quarter of 2007. In March, the Producer Price
Index for the Net Output of Total Mining, Utilities, and Manufacturing Industries was 110.3
(December 2006 = 100), 8.2 percent above its year-ago level.
Trade Industries. The Producer Price Index for the Net Output of Total Trade Industries moved
up 0.3 percent after increasing 0.5 percent in February. (Trade indexes measure changes in
margins received by wholesalers and retailers.) The rate of increase in margins received by
department stores slowed to 0.2 percent in March from 3.5 percent in the previous month. The
margin indexes for merchant wholesalers of nondurable goods, grocery stores, automobile
dealers, and fuel dealers turned down after rising in the prior month. Conversely, margins
received by gasoline stations increased 2.7 percent following a 9.8-percent drop a month earlier.
The margin indexes for shoe stores and furniture stores also turned up in March. Margins
received by merchant wholesalers of durable goods rose after no change in February. For the
first quarter of 2008, the Producer Price Index for the Net Output of Total Trade Industries fell at
a 1.9-percent annualized rate after rising at an 8.3-percent annualized rate in the preceding
quarter. In March, the Producer Price Index for the Net Output of Total Trade Industries was
105.4 (December 2006 = 100), 2.6 percent above its year-ago level.
Transportation and Warehousing Industries. The Producer Price Index for the Net Output of
Transportation and Warehousing Industries rose 1.0 percent in March following a 0.3-percent
increase in the previous month. Prices received by the scheduled passenger air transportation
industry advanced 3.3 percent after inching down 0.1 percent a month earlier. The industry
indexes for couriers, local general freight trucking, line-haul railroads, and long distance
specialized freight trucking of new goods also turned up following declines in the preceding
month. By contrast, prices received by the scheduled freight air transportation industry
decreased 0.2 percent after climbing 4.1 percent a month earlier. The industry indexes for
coastal and Great Lakes freight transportation, general warehousing and storage, and used
household and office goods moving also turned down after rising in February. Prices received
by the industry for long distance general freight trucking (less than truckload) advanced less than
they had in the prior month. From December 2007 to March 2008, the Producer Price Index for
the Net Output of Transportation and Warehousing Industries climbed at an 11.4-percent
annualized rate following a 7.1-percent annualized rate of increase in the final quarter of 2007.
In March, the Producer Price Index for the Net Output of Transportation and Warehousing
Industries was 109.2 (December 2006 = 100), 6.7 percent above its year-ago level.
-7-
Traditional Service Industries. The Producer Price Index for the Net Output of Total
Traditional Service Industries decreased 0.6 percent in March after edging down 0.1 percent in
February. Prices received by the commercial banking industry fell 8.2 percent in March
following a 0.8-percent decline a month earlier. The industry indexes for offices of physicians
(excluding mental health) and direct life insurance carriers turned down after increasing in the
previous month. Prices received by management consultants and wired telecommunication
carriers were unchanged in March following advances in February. By contrast, the index for
investment banking and securities dealing increased 5.8 percent in March after falling 1.3
percent in February. The indexes for general medical and surgical hospitals, software publishers,
and lessors of nonresidential buildings (excluding miniwarehouses) also turned up in March.
Prices received by portfolio managers fell less than they had in February. During the first
quarter of 2008, the Producer Price Index for the Net Output of Total Traditional Service
Industries declined at a 0.8-percent annualized rate following a 2.7-percent annualized rate of
decrease from September to December 2007. In March, the Producer Price Index for the Net
Output of Total Traditional Service Industries was 101.3 (December 2006 = 100), 1.2 percent
above its year-ago level.
*****
Producer Price Index data for April 2008 are scheduled to be released on Tuesday, May 20, 2008
at 8:30 a.m. (EDT).
Correction to Table 5 of News Release, "Producer Price Indexes - February 2008"
The March 18, 2008 news release, "Producer Price Indexes - February 2008" contained
an erroneous seasonally adjusted February 2008 index value on Table 5 for Materials for
nondurable manufacturing. The correct value for this index is 201.2, 0.1 index point above what
was shown in the news release.
This error has been corrected in the April 15, 2008 news release, "Producer Price Indexes
- March 2008." BLS regrets any inconvenience this error may have caused data users. Further
information is available from the PPI Section of Index Analysis and Public Information at ppi-
info@bls.gov or (202) 691-7705.
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