Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 18-1142 
8:30 a.m. (EDT), Wednesday, July 11, 2018

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 2018


The Producer Price Index for final demand rose 0.3 percent in June, seasonally adjusted, the U.S. 
Bureau of Labor Statistics reported today. Final demand prices advanced 0.5 percent in May and 
0.1 percent in April. (See table A.) On an unadjusted basis, the final demand index moved up 3.4 
percent for the 12 months ended in June, the largest 12-month increase since climbing 3.7 
percent in November 2011.

In June, most of the rise in the index for final demand is attributable to a 0.4-percent advance in 
prices for final demand services. The index for final demand goods edged up 0.1 percent.

Prices for final demand less foods, energy, and trade services moved up 0.3 percent in June after 
rising 0.1 percent in May. For the 12 months ended in June, the index for final demand less 
foods, energy, and trade services climbed 2.7 percent. 

Final Demand

Final demand services: Prices for final demand services moved up 0.4 percent in June, the largest 
advance since a 0.5-percent rise in January. In June, half of the broad-based increase in the index for 
final demand services can be traced to margins for final demand trade services, which climbed 0.7 
percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for 
final demand services less trade, transportation, and warehousing and for final demand transportation 
and warehousing services rose 0.3 percent and 0.5 percent, respectively.

Product detail: Over 40 percent of the advance in the index for final demand services is attributable 
to a 21.8-percent jump in the index for fuels and lubricants retailing. The indexes for hospital 
outpatient care; health, beauty, and optical goods retailing; truck transportation of freight; 
automobiles and automobile parts retailing; and food retailing also moved higher. Conversely, prices 
for apparel, footwear, and accessories retailing declined 2.9 percent. The indexes for inpatient care 
and airline passenger services also decreased. (See table 4.)

Final demand goods: Prices for final demand goods edged up 0.1 percent in June following a 1.0-
percent rise in May. Leading the June increase, the index for final demand goods less foods and 
energy advanced 0.3 percent. Prices for final demand energy climbed 0.8 percent. In contrast, the 
index for final demand foods fell 1.1 percent.

Product detail: A major factor in the June increase in prices for final demand goods was the index 
for motor vehicles, which moved up 0.4 percent. Prices for diesel fuel, electric power, industrial 
chemicals, and fresh fruits and melons also advanced. Conversely, prices for fresh and dry vegetables 
dropped 13.8 percent. The indexes for corn, pharmaceutical preparations, and residential natural gas 
also moved lower.
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

2017

June

 0.1 0.2 0.0 0.3 -0.1 0.1 0.1 -0.3 0.2 0.2 1.9 2.1

July

 0.1 0.1 0.0 0.0 -0.3 0.1 0.1 0.2 -0.4 0.2 2.0 2.0

Aug.

 0.3 0.1 0.5 -0.7 3.1 0.2 0.2 0.5 0.2 0.0 2.4 1.9

Sept.

 0.3 0.2 0.6 -0.1 2.9 0.2 0.2 -0.2 1.3 0.1 2.6 2.1

Oct.

 0.4 0.4 0.3 0.3 0.2 0.3 0.5 0.9 0.7 0.4 2.8 2.4

Nov.

 0.4 0.2 0.8 0.2 3.5 0.3 0.1 -0.3 0.9 0.2 3.0 2.4

Dec.

 0.0 0.1 0.1 -0.2 0.2 0.1 -0.2 -0.4 -0.6 0.2 2.5 2.3

2018

Jan.

 0.5 0.5 0.6 0.1 2.9 0.3 0.5 0.4 -0.2 0.5 2.6 2.5

Feb.(1)

 0.2 0.3 0.1 -0.6 0.1 0.3 0.2 0.1 1.0 0.3 2.8 2.7

Mar.(1)

 0.3 0.4 0.2 2.2 -2.1 0.3 0.3 0.2 0.7 0.3 3.0 2.9

Apr.

 0.1 0.1 0.0 -1.1 0.1 0.3 0.1 0.2 0.6 -0.1 2.6 2.5

May

 0.5 0.1 1.0 0.1 4.6 0.3 0.3 0.9 0.7 0.0 3.1 2.6

June

 0.3 0.3 0.1 -1.1 0.8 0.3 0.4 0.7 0.5 0.3 3.4 2.7

Footnotes
 (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2018 have been revised to reflect the availability of late reports and corrections by respondents.

 
Intermediate Demand by Commodity Type

With intermediate demand in June, prices for processed goods advanced 0.7 percent, the index for 
unprocessed goods fell 1.0 percent, and prices for services edged up 0.1 percent. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand increased 0.7 percent in June, the third consecutive rise. About two-thirds of the June 
advance can be attributed to prices for processed materials less foods and energy, which climbed 0.7 
percent. The index for processed energy goods moved up 1.8 percent. In contrast, prices for 
processed foods and feeds dropped 1.1 percent. For the 12 months ended in June, the index for 
processed goods for intermediate demand increased 6.8 percent, the largest 12-month rise since 
jumping 7.2 percent in November 2011.

Product detail: A major factor in the advance in the index for processed goods for intermediate 
demand was prices for industrial chemicals, which rose 2.1 percent. The indexes for diesel fuel, 
commercial electric power, industrial electric power, thermoplastic resins and materials, and hot 
rolled steel sheet and strip also moved higher. Conversely, prices for prepared animal feeds 
decreased 1.6 percent. The indexes for utility natural gas and for inedible fats and oils also fell. (See 
table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand declined 1.0 percent in June after rising 2.5 percent in May. Leading the decrease, prices for 
unprocessed energy materials fell 2.6 percent. The index for unprocessed nonfood materials less 
energy moved down 0.2 percent. In contrast, prices for unprocessed foodstuffs and feedstuffs 
advanced 0.2 percent. For the 12 months ended in June, the index for unprocessed goods for 
intermediate demand increased 5.8 percent.

Product detail: Most of the June decline in the index for unprocessed goods for intermediate demand 
can be traced to a 9.5-percent drop in prices for crude petroleum. The indexes for corn, oilseeds, 
carbon steel scrap, fresh and dry vegetables, and slaughter cows and bulls also declined. Conversely, 
prices for raw milk rose 4.4 percent. The indexes for natural gas and nonferrous scrap also advanced.
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.)

2017

June

 0.2 0.7 0.3 0.1 3.8 0.0 0.8 -1.4 0.6 5.8

July

 -0.1 -0.2 0.1 -0.1 3.6 0.3 0.6 -0.8 0.8 6.0

Aug.

 0.5 -0.3 1.4 0.4 4.1 -0.7 -3.6 1.3 1.3 7.0

Sept.

 0.6 -0.8 2.5 0.3 4.5 0.5 -1.0 1.4 1.4 7.7

Oct.

 0.6 0.5 1.6 0.4 4.8 0.5 1.2 1.8 -2.6 8.5

Nov.

 0.8 -0.2 2.5 0.5 5.4 2.6 2.5 4.7 -0.2 11.0

Dec.

 0.3 0.1 0.8 0.2 5.0 1.3 -0.7 3.3 1.8 5.0

2018

Jan.

 0.8 0.1 2.1 0.5 4.7 1.9 -0.6 3.5 3.5 3.3

Feb.(1)

 0.6 1.2 0.8 0.5 4.8 1.7 2.2 2.3 0.0 5.3

Mar.(1)

 -0.3 1.2 -3.2 0.4 4.6 -4.5 -1.6 -10.3 1.2 4.2

Apr.

 0.5 0.3 1.3 0.3 4.7 0.9 -2.1 3.8 0.7 3.2

May

 1.5 0.2 4.6 0.8 6.3 2.5 -0.1 6.3 -0.1 6.8

June

 0.7 -1.1 1.8 0.7 6.8 -1.0 0.2 -2.1 -0.2 5.8

Footnotes
 (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2018 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 moved up 0.1 
percent in June, the smallest advance since edging up 0.1 percent in July 2017. In June, the increase 
was led by prices for transportation and warehousing services for intermediate demand, which rose 
0.2 percent. Margins for trade services for intermediate demand advanced 0.1 percent, while prices 
for services less trade, transportation, and warehousing for intermediate demand were unchanged. 
For the 12 months ended in June, the index for services for intermediate demand increased 2.9 
percent.

Product detail: In June, prices for truck transportation of freight advanced 1.3 percent. The indexes 
for business loans (partial); fuels and lubricants retailing; hardware, building materials, and supplies 
retailing; and securities brokerage, dealing, and investment advice also moved higher. In contrast, 
nonresidential real estate rents fell 2.4 percent. The indexes for television advertising time sales, 
financial auditing, and 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.)

2017

June

 0.3 0.0 0.1 0.5 2.8

July

 0.1 0.1 0.0 0.1 2.2

Aug.

 0.2 0.3 0.2 0.2 2.8

Sept.

 0.2 -0.3 0.7 0.1 2.8

Oct.

 0.6 1.0 0.6 0.6 3.3

Nov.

 0.2 -0.3 0.6 0.2 3.2

Dec.

 0.2 0.4 -0.1 0.2 2.9

2018

Jan.

 0.3 0.4 0.1 0.3 3.2

Feb.(1)

 0.3 0.6 0.6 0.3 3.1

Mar.(1)

 0.3 0.6 0.4 0.1 3.2

Apr.

 0.3 0.9 0.5 0.2 3.1

May

 0.3 0.9 0.4 0.1 3.3

June

 0.1 0.1 0.2 0.0 2.9

Footnotes
 (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2018 have been revised to reflect the availability of late reports and corrections by respondents.

 
Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand increased 0.3 percent in 
June, the eleventh consecutive advance. In June, the index for total goods inputs to stage 4 
intermediate demand rose 0.5 percent. Prices for total services inputs were unchanged. (See table D.) 
Increases in the indexes for diesel fuel; business loans (partial); commercial electric power; 
fabricated structural metal; hardware, building materials, and supplies retailing; and industrial 
chemicals outweighed declines in the indexes for nonresidential real estate rents, chemicals and 
allied products wholesaling, and corn. (See table 6.) For the 12 months ended in June, prices for stage 
4 intermediate demand climbed 3.9 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand advanced 0.5 percent in 
June, the third straight rise. In June, the index for total goods inputs to stage 3 intermediate demand 
increased 1.1 percent, and prices for total services inputs were unchanged. Advances in the indexes 
for raw milk, diesel fuel, industrial chemicals, slaughter steers and heifers, asphalt, and fuels and 
lubricants retailing outweighed declines in prices for nonresidential real estate rents, jet fuel, and 
slaughter cows and bulls. For the 12 months ended in June, prices for stage 3 intermediate demand 
moved up 5.4 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand edged down 0.1 percent 
in June after advancing 1.2 percent in May. In June, prices for total goods inputs to stage 2 
intermediate demand fell 0.5 percent. Conversely, the index for total services inputs increased 0.2 
percent. Lower prices for crude petroleum, oilseeds, corn, financial auditing, and prepared animal 
feeds outweighed advances in the indexes for tax preparation and planning, natural gas, thermoplastic 
resins and materials, and industrial chemicals. For the 12 months ended in June, prices for stage 2 
intermediate demand rose 5.5 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved up 0.7 percent in 
June, the third consecutive rise. In June, the index for total goods inputs to stage 1 intermediate 
demand advanced 1.1 percent, and prices for total services inputs inched up 0.1 percent. Increases in 
the indexes for diesel fuel, industrial chemicals, nonferrous scrap, natural gas, fuels and lubricants 
retailing, and business loans (partial) outweighed decreases in prices for crude petroleum, carbon 
steel scrap, and nonresidential real estate rents. For the 12 months ended in June, the index for stage 
1 intermediate demand rose 7.3 percent, the largest 12-month advance since climbing 8.1 percent in 
October 2011.
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

2017

June

 0.3 0.3 0.3 0.4 0.4 0.4 0.0 -0.6 0.4 0.2 0.0 0.4

July

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

Aug.

 0.3 0.3 0.3 0.4 0.5 0.2 0.2 0.5 0.0 0.7 1.1 0.2

Sept.

 0.2 0.3 0.2 0.4 0.7 0.2 0.6 1.3 0.2 0.6 1.0 0.2

Oct.

 0.5 0.4 0.7 0.8 0.8 0.7 0.7 0.8 0.5 0.5 0.3 0.9

Nov.

 0.4 0.6 0.2 1.0 1.8 0.1 1.0 1.7 0.3 0.7 1.4 -0.1

Dec.

 0.1 0.1 0.1 0.3 0.3 0.3 0.6 1.3 0.1 0.5 0.9 0.0

2018

Jan.

 0.5 0.8 0.3 0.6 1.0 0.3 0.9 1.5 0.5 1.1 1.9 0.2

Feb.(1)

 0.3 0.2 0.3 0.7 1.0 0.3 0.8 1.4 0.3 0.3 0.3 0.3

Mar.(1)

 0.3 0.4 0.3 -0.7 -1.5 0.2 -1.6 -3.7 0.2 -0.2 -0.5 0.3

Apr.

 0.3 0.4 0.2 0.2 -0.2 0.5 1.0 1.8 0.3 0.5 0.4 0.5

May

 0.7 0.9 0.4 1.3 2.3 0.3 1.2 3.2 -0.2 1.2 1.7 0.8

June

 0.3 0.5 0.0 0.5 1.1 0.0 -0.1 -0.5 0.2 0.7 1.1 0.1

Footnotes
 (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2018 have been revised to reflect the availability of late reports and corrections by respondents.

 
_______________
The Producer Price Index for July 2018 is scheduled to be released on Thursday, August 9, 
2018 at 8:30 a.m. (EDT).


                                               *****

                                      Resampling of Industries

Effective with the release of data for June 2018, the Producer Price Index (PPI) includes data for 
30 resampled industries classified according to the 2017 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 index additions, deletions, and recodes effective June 2018, see the current 
issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201806.pdf, or contact the 
PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

NAICS
Code                    Industry
212290        Other metal ore mining
213114        Support activities for metal mining
236221        New warehouse building construction
311314        Cane sugar manufacturing
311813        Frozen cakes and other pastries manufacturing
311830        Tortilla manufacturing
313240        Knit fabric mills
325611        Soap and other detergent manufacturing
326140        Polystyrene foam product manufacturing
326150        Urethane and other foam product manufacturing
327993        Mineral wool manufacturing
331524        Aluminum foundries, except die-casting
332112        Nonferrous forging
332117        Powder metallurgy part manufacturing
333112        Lawn and garden equipment manufacturing
333914        Measuring, dispensing, and other pumping equipment manufacturing
335921        Fiber optic cable manufacturing
335929        Other communication and energy wire manufacturing
336120        Heavy duty truck manufacturing
336390        Other motor vehicle parts manufacturing
337125        Household furniture, except wood or metal, manufacturing
339999        All other miscellaneous manufacturing
453210        Office supplies and stationery stores
484121        General freight trucking, long-distance TL
484122        General freight trucking, long-distance LTL
488310        Port and harbor operations
511191        Greeting card publishers
531120        Lessors of nonresidential buildings
562111        Solid waste collection
621210        Offices of dentists

The PDF version of the news release

News release charts

Supplemental Files Table of Contents

Table of Contents

Last Modified Date: July 11, 2018