Transmission of material in this release is embargoed until USDL 23-0070
8:30 a.m. (ET) Wednesday, January 18, 2023
Technical information: (202) 691-7705 * ppi-info@bls.gov * www.bls.gov/ppi
Media contact: (202) 691-5902 * PressOffice@bls.gov
PRODUCER PRICE INDEXES - DECEMBER 2022
The Producer Price Index for final demand declined 0.5 percent in December, seasonally
adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.2
percent in November and 0.4 percent in October. (See table A.) On an unadjusted basis, the
index for final demand increased 6.2 percent in 2022 after rising 10.0 percent in 2021.
In December, the decrease in the final demand index can be attributed to a 1.6-percent decline in
prices for final demand goods. In contrast, the index for final demand services rose 0.1 percent.
Prices for final demand less foods, energy, and trade services edged up 0.1 percent in December
after increasing 0.3 percent in November. The index for final demand less foods, energy, and
trade services advanced 4.6 percent in 2022 following a 7.0-percent rise in 2021.
Final Demand
Final demand goods: Prices for final demand goods moved down 1.6 percent in December, the
largest decrease since falling 1.8 percent in July. Leading the December decline, the index for final
demand energy dropped 7.9 percent. Prices for final demand foods decreased 1.2 percent.
Conversely, the index for final demand goods less foods and energy advanced 0.2 percent.
Product detail: Nearly half of the December decrease in the index for final demand goods can be
traced to a 13.4-percent decline in prices for gasoline. The indexes for diesel fuel; jet fuel; fresh and
dry vegetables; canned, cooked, smoked, or prepared poultry; and basic organic chemicals also fell.
In contrast, prices for carbon steel scrap increased 8.3 percent. The indexes for chicken eggs and for
electric power also moved higher. (See table 2.)
Final demand services: Prices for final demand services edged up 0.1 percent in December after
rising 0.2 percent in November. The December increase can be traced to margins for final demand
trade services, which advanced 0.3 percent. (Trade indexes measure changes in margins received by
wholesalers and retailers.) Conversely, the index for final demand transportation and warehousing
services fell 0.2 percent, while prices for final demand services less trade, transportation, and
warehousing were unchanged.
Product detail: A major factor in the December increase in prices for final demand services was a
17.6-percent jump in margins for fuels and lubricants retailing. The indexes for deposit services
(partial), airline passenger services, inpatient care, and professional and commercial equipment
wholesaling also moved higher. In contrast, prices for truck transportation of freight decreased 1.7
percent. The indexes for residential real estate loans (partial), machinery and vehicle wholesaling,
and guestroom rental 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 |
2021 |
|
Dec. |
0.6 |
0.4 |
-0.1 |
-0.2 |
-1.4 |
0.4 |
0.9 |
1.9 |
1.6 |
0.3 |
10.0 |
7.0 |
2022 |
|
Jan. |
1.2 |
0.8 |
1.6 |
1.8 |
4.1 |
0.8 |
0.9 |
1.3 |
0.0 |
0.8 |
10.1 |
6.9 |
Feb. |
1.1 |
0.2 |
2.2 |
1.9 |
7.2 |
0.8 |
0.5 |
1.7 |
2.0 |
-0.3 |
10.4 |
6.7 |
Mar. |
1.7 |
1.0 |
2.4 |
2.4 |
6.6 |
1.1 |
1.3 |
2.3 |
5.6 |
0.4 |
11.7 |
7.1 |
Apr. |
0.5 |
0.4 |
1.3 |
1.5 |
1.5 |
1.1 |
0.0 |
0.1 |
2.1 |
-0.2 |
11.2 |
6.8 |
May |
0.8 |
0.5 |
1.5 |
0.4 |
4.8 |
0.7 |
0.4 |
0.6 |
2.5 |
0.1 |
11.1 |
6.8 |
June |
0.9 |
0.3 |
2.2 |
-0.1 |
8.9 |
0.5 |
0.3 |
0.3 |
0.8 |
0.2 |
11.2 |
6.4 |
July |
-0.4 |
0.2 |
-1.8 |
1.2 |
-9.1 |
0.1 |
0.2 |
0.7 |
-0.5 |
0.0 |
9.7 |
5.8 |
Aug. |
-0.1 |
0.2 |
-1.0 |
-0.1 |
-5.4 |
0.2 |
0.5 |
1.0 |
-1.1 |
0.4 |
8.7 |
5.6 |
Sept. |
0.3 |
0.3 |
0.3 |
1.5 |
0.3 |
0.0 |
0.3 |
-0.2 |
-0.3 |
0.6 |
8.5 |
5.7 |
Oct. |
0.4 |
0.2 |
0.6 |
0.7 |
2.5 |
0.0 |
0.2 |
0.1 |
0.4 |
0.2 |
8.2 |
5.5 |
Nov. |
0.2 |
0.3 |
0.1 |
3.3 |
-3.2 |
0.3 |
0.2 |
0.0 |
-0.9 |
0.4 |
7.3 |
4.9 |
Dec. |
-0.5 |
0.1 |
-1.6 |
-1.2 |
-7.9 |
0.2 |
0.1 |
0.3 |
-0.2 |
0.0 |
6.2 |
4.6 |
Intermediate Demand by Commodity Type
Within intermediate demand in December, prices for processed goods decreased 2.8 percent, the
index for unprocessed goods rose 3.4 percent, and prices for services increased 0.4 percent. (See
tables B and C.)
Processed goods for intermediate demand: The index for processed goods for intermediate
demand moved down 2.8 percent in December, the largest decline since falling 3.4 percent in April
2020. Over 80 percent of the broad-based decrease in December is attributable to prices for
processed energy goods, which dropped 10.9 percent. The indexes for processed materials less foods
and energy and for processed foods and feeds also moved down, 0.5 percent and 0.8 percent,
respectively. In 2022, prices for processed goods for intermediate demand increased 4.7 percent after
jumping 24.4 percent in 2021.
Product detail: Nearly two-thirds of the December decline in the index for processed goods for
intermediate demand can be traced to a 27.0-percent drop in prices for diesel fuel. The indexes for
gasoline; basic organic chemicals; jet fuel; asphalt; and canned, cooked, smoked, or prepared poultry
also moved lower. Conversely, prices for electric power advanced 1.0 percent. The indexes for beef
and veal and for primary nonferrous metals also increased.
Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate
demand rose 3.4 percent in December following three consecutive declines. Leading the increase, the
index for unprocessed energy materials advanced 9.5 percent. Prices for unprocessed nonfood
materials less energy moved up 0.6 percent. In contrast, the index for unprocessed foodstuffs and
feedstuffs fell 1.5 percent. In 2022, prices for unprocessed goods for intermediate demand moved up
11.7 percent following a 40.0-percent jump in 2021.
Product detail: A major factor in the increase in prices for unprocessed goods for intermediate
demand was the index for natural gas, which surged 45.3 percent. Prices for ungraded chicken eggs,
carbon steel scrap, hay and hayseeds, slaughter turkeys, and aluminum base scrap also moved up.
Conversely, the index for grains declined 5.9 percent. Prices for crude petroleum and for raw cotton
also decreased.
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.) |
2021 |
|
Dec. |
-0.1 |
0.1 |
-2.7 |
0.6 |
24.4 |
-4.8 |
3.8 |
-12.1 |
-1.8 |
40.0 |
2022 |
|
Jan. |
2.2 |
2.6 |
4.7 |
1.5 |
24.8 |
3.1 |
2.9 |
4.2 |
1.1 |
36.4 |
Feb. |
1.5 |
2.1 |
5.8 |
0.4 |
23.3 |
9.8 |
5.4 |
18.2 |
1.5 |
33.5 |
Mar. |
2.3 |
2.1 |
7.3 |
0.9 |
22.1 |
2.9 |
7.7 |
-4.3 |
9.7 |
43.3 |
Apr. |
2.0 |
3.2 |
4.4 |
1.2 |
22.0 |
5.5 |
4.2 |
9.3 |
1.3 |
50.1 |
May |
2.3 |
1.1 |
4.5 |
1.8 |
21.6 |
5.4 |
0.2 |
14.6 |
-4.2 |
46.4 |
June |
2.0 |
0.0 |
8.8 |
0.1 |
21.9 |
4.8 |
-0.4 |
11.1 |
-2.0 |
50.3 |
July |
-2.3 |
0.3 |
-8.8 |
-0.4 |
17.2 |
-9.3 |
-1.9 |
-14.3 |
-7.2 |
32.5 |
Aug. |
-1.4 |
-0.1 |
-4.4 |
-0.6 |
14.3 |
4.6 |
-1.6 |
10.9 |
0.4 |
36.9 |
Sept. |
-0.1 |
-0.2 |
2.0 |
-0.8 |
12.9 |
-3.0 |
1.1 |
-6.6 |
0.0 |
29.1 |
Oct. |
-0.1 |
-0.1 |
1.9 |
-0.7 |
10.2 |
-10.2 |
-1.5 |
-18.3 |
-5.1 |
9.1 |
Nov. |
-0.8 |
0.7 |
-3.2 |
-0.2 |
7.7 |
-3.7 |
-0.1 |
-8.0 |
-0.9 |
2.8 |
Dec. |
-2.8 |
-0.8 |
-10.9 |
-0.5 |
4.7 |
3.4 |
-1.5 |
9.5 |
0.6 |
11.7 |
Services for intermediate demand: The index for services for intermediate demand rose 0.4 percent
in December, the sixth consecutive increase. Over 70 percent of the December advance can be
attributed to prices for services less trade, transportation, and warehousing for intermediate demand,
which moved up 0.5 percent. The index for trade services for intermediate demand increased 0.6
percent. In contrast, prices for transportation and warehousing services for intermediate demand fell
0.1 percent. In 2022, the index for services for intermediate demand rose 6.4 percent following an
8.3-percent advance in 2021.
Product detail: Over 40 percent of the December rise in the index for services for intermediate
demand can be traced to a 16.4-percent increase in prices for deposit services (partial). The indexes
for fuels and lubricants retailing, business loans (partial), gross rents for retail properties, paper and
plastics products wholesaling, and airline passenger services also advanced. Conversely, prices for
truck transportation of freight fell 1.7 percent. The indexes for investment banking and for chemicals
and allied products wholesaling 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.) |
2021 |
|
Dec. |
0.8 |
1.5 |
1.6 |
0.5 |
8.3 |
2022 |
|
Jan. |
0.8 |
1.4 |
0.6 |
0.6 |
7.9 |
Feb. |
0.2 |
1.4 |
0.4 |
-0.2 |
7.8 |
Mar. |
1.3 |
4.4 |
2.1 |
0.0 |
8.4 |
Apr. |
0.9 |
1.0 |
1.7 |
0.6 |
8.0 |
May |
0.5 |
0.6 |
0.6 |
0.4 |
7.9 |
June |
-0.3 |
-0.7 |
0.1 |
-0.3 |
6.3 |
July |
0.3 |
0.0 |
1.0 |
0.2 |
5.9 |
Aug. |
0.6 |
-1.1 |
-0.4 |
1.4 |
6.0 |
Sept. |
0.4 |
-0.1 |
-0.7 |
0.9 |
6.1 |
Oct. |
0.4 |
0.1 |
0.7 |
0.5 |
6.6 |
Nov. |
0.8 |
1.3 |
-1.3 |
1.1 |
6.9 |
Dec. |
0.4 |
0.6 |
-0.1 |
0.5 |
6.4 |
Intermediate Demand by Production Flow
Stage 4 intermediate demand: Prices for stage 4 intermediate demand declined 0.3 percent in
December following four consecutive increases. In December, the index for total goods inputs to
stage 4 intermediate demand fell 0.9 percent. In contrast, prices for total services inputs rose 0.3
percent. (See table D.) Decreases in the indexes for diesel fuel; gasoline; grains; strawberries;
canned, cooked, smoked, or prepared poultry; and portfolio management outweighed increases in
prices for deposit services (partial), gross rents for retail properties, and electric power. In 2022, the
index for stage 4 intermediate demand moved up 6.0 percent after rising 12.6 percent in 2021.
Stage 3 intermediate demand: The index for stage 3 intermediate demand declined 2.1 percent in
December, the largest decrease since dropping 5.4 percent in April 2020. In December, prices for
total goods inputs to stage 3 intermediate demand fell 4.5 percent. Conversely, the index for total
services inputs rose 0.3 percent. Decreases in prices for diesel fuel, jet fuel, slaughter chickens,
grains, raw milk, and truck transportation of freight outweighed advances in the indexes for deposit
services (partial), ungraded chicken eggs, and hay and hayseeds. In 2022, prices for stage 3
intermediate demand increased 4.9 percent after jumping 20.8 percent in 2021.
Stage 2 intermediate demand: Prices for stage 2 intermediate demand advanced 2.2 percent in
December following three consecutive declines. In December, the index for total goods inputs to
stage 2 intermediate demand rose 3.5 percent, and prices for total services inputs increased 1.1
percent. Advances in the indexes for natural gas, deposit services (partial), fuels and lubricants
retailing, business loans (partial), carbon steel scrap, and aluminum base scrap outweighed declines
in prices for crude petroleum, basic organic chemicals, and guestroom rental. In 2022, the index for
stage 2 intermediate demand rose 8.7 percent after jumping 21.6 percent in 2021.
Stage 1 intermediate demand: The index for stage 1 intermediate demand declined 1.7 percent in
December, the largest decrease since falling 1.9 percent in July. In December, prices for total goods
inputs to stage 1 intermediate demand dropped 3.2 percent. The index for total services inputs was
unchanged. Decreases in prices for diesel fuel, basic organic chemicals, gasoline, grains, guestroom
rental, and investment banking outweighed increases in the indexes for gross rents for retail
properties, fuels and lubricants retailing, and carbon steel scrap. In 2022, prices for stage 1
intermediate demand advanced 5.5 percent following a 17.8-percent rise in 2021.
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 |
2021 |
|
Dec. |
0.7 |
0.5 |
0.8 |
0.8 |
0.7 |
0.9 |
-2.2 |
-5.6 |
1.2 |
0.4 |
0.0 |
0.8 |
2022 |
|
Jan. |
1.5 |
2.1 |
1.0 |
1.6 |
2.6 |
0.7 |
1.4 |
2.7 |
0.1 |
1.4 |
1.8 |
1.0 |
Feb. |
0.6 |
1.2 |
0.0 |
1.4 |
2.6 |
0.1 |
4.3 |
8.4 |
0.3 |
1.0 |
1.6 |
0.2 |
Mar. |
1.2 |
1.6 |
0.8 |
3.1 |
4.5 |
1.6 |
0.8 |
0.3 |
1.3 |
2.8 |
3.3 |
2.2 |
Apr. |
1.0 |
1.2 |
0.7 |
2.5 |
3.7 |
1.3 |
2.8 |
4.7 |
0.7 |
1.7 |
2.4 |
0.9 |
May |
0.9 |
1.4 |
0.4 |
1.7 |
2.6 |
0.6 |
3.6 |
6.8 |
0.3 |
1.5 |
2.3 |
0.7 |
June |
0.4 |
1.1 |
-0.3 |
0.5 |
1.4 |
-0.5 |
2.9 |
5.4 |
0.0 |
1.0 |
2.4 |
-0.6 |
July |
-0.4 |
-0.9 |
0.0 |
-1.4 |
-3.0 |
0.4 |
-4.2 |
-8.4 |
1.0 |
-1.9 |
-3.2 |
-0.5 |
Aug. |
0.3 |
0.0 |
0.6 |
-1.6 |
-3.1 |
0.1 |
3.1 |
4.7 |
1.3 |
-0.6 |
-1.4 |
0.4 |
Sept. |
0.4 |
0.1 |
0.6 |
-0.1 |
-0.2 |
0.0 |
-1.8 |
-3.9 |
0.5 |
0.3 |
0.4 |
0.2 |
Oct. |
0.1 |
-0.1 |
0.2 |
-0.1 |
-0.6 |
0.5 |
-4.7 |
-9.9 |
0.8 |
0.1 |
-0.2 |
0.4 |
Nov. |
0.4 |
-0.3 |
1.0 |
-0.5 |
-1.4 |
0.4 |
-1.3 |
-3.3 |
0.6 |
-0.1 |
-1.1 |
0.9 |
Dec. |
-0.3 |
-0.9 |
0.3 |
-2.1 |
-4.5 |
0.3 |
2.2 |
3.5 |
1.1 |
-1.7 |
-3.2 |
0.0 |
________________
The Producer Price Index for January 2023 is scheduled to be released on Thursday, February 16, 2023,
at 8:30 a.m. (ET).
*****
Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be
Available on February 14, 2023
Each year with the release of PPI data for January, seasonal adjustment factors and relative
importance figures are recalculated to reflect price movements from the just-completed calendar
year. The following information relating to the seasonal-factor update will be available on
February 14, 2023 (2 workdays prior to the release of PPI data for January 2023 on February 16,
2023):
* Direct seasonal factors for PPI commodity indexes for the year 2023,
* Recalculated seasonal factors for the last 5 years (2018-2022) for PPI commodity indexes,
* Recalculated seasonal factors for the last 5 years (2018-2022) for PPI Final Demand-
Intermediate Demand indexes,
* Recalculated seasonal index data for the last 5 years (2018-2022) for Final Demand-
Intermediate Demand and commodity indexes. This revision to seasonally adjusted indexes
for the previous 5 years will be posted to the PPI database on the BLS website.
In addition, the following relative importance tables, which include values for December 2022,
will be available on February 14, 2023:
* Final demand by individual commodities
* Final demand by component series
* Individual commodities of intermediate demand by commodity type
* Component series of intermediate demand by commodity type
* Individual commodities of intermediate demand by production flow
* Component series of intermediate demand by production flow
* Commodities, all levels
* Wherever-provided services and construction
This information will be available on the PPI website at www.bls.gov/ppi or by contacting the
PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.
*****
PPI Weights to be Updated to Reflect 2017 Census Shipment Values
With the release of January 2023 Producer Price Index (PPI) data on February 16, 2023, the
Bureau of Labor Statistics will update PPI value weights to more accurately reflect recent
production and marketing patterns. The updated weights will be constructed using 2017 value of
shipments data from the Census of Manufactures, the Census of Mining, the Census of Services,
and the Census of Agriculture. These data were collected in accordance with the North American
Product Classification System (NAPCS). From January 2018 through December 2022, PPI
weights have been based on 2012 North American Industry Classification System (NAICS)
shipment values.
All PPIs will be affected by this weight update, including all industry net output indexes, as well
as indexes for traditional commodity groupings. In addition, weights will be updated from the
2012 to the 2017 Economic Census for all Final Demand-Intermediate Demand (FD-ID) indexes,
special commodity-grouping indexes, and inputs to industry indexes. This weight revision will
not result in changes to the reference base for indexes, the dates when PPIs are set to 100.
It is important to note that the basic structures of the PPI commodity and FD-ID classification
systems will not change as a result of the weight revision. However, PPIs classified according to
the NAICS will be updated to reflect 2022 NAICS definitions established by the U.S. Census
Bureau. The weight update also will result in shifting relative importance values. These shifts
will impact aggregate indexes in a manner commensurate with the relative gains and losses in
value weights from 2012 to 2017.
In addition, PPI sample updates normally occurring with the release of October 2022 and
February 2023 data will be combined and released in conjunction with the release of January
2023 PPI data in February 2023.
Commodity and FD-ID relative importance figures for December 2022 will be released on
February 14, 2023, two business days prior to the release of January 2023 PPI data. This
information will be available on the PPI website at www.bls.gov/ppi/tables/. Following the
January 2023 PPI data release, a concordance between Census product codes and PPI commodity
codes will be available upon request by contacting the PPI Section of Index Analysis and Public
Information at ppi-info@bls.gov or (202) 691-7705.
United States Department of Labor
