Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 17-0317 
8:30 a.m. (EDT), Tuesday, March 14, 2017

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

                                
                                 PRODUCER PRICE INDEXES - FEBRUARY 2017


The Producer Price Index for final demand increased 0.3 percent in February, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.6 
percent in January and 0.2 percent in December. (See table A.) On an unadjusted basis, the final 
demand index climbed 2.2 percent for the 12 months ended February 2017, the largest advance 
since a 2.4-percent increase in the 12 months ended March 2012.

In February, over 80 percent of the advance in the final demand index is attributable to a 0.4-
percent increase in prices for final demand services. The index for final demand goods moved up 
0.3 percent.

Prices for final demand less foods, energy, and trade services rose 0.3 percent in February, the 
largest increase since a 0.3-percent advance in April 2016. For the 12 months ended in February, 
the index for final demand less foods, energy, and trade services climbed 1.8 percent.

Final Demand

Final demand services: The index for final demand services moved up 0.4 percent in February, the 
largest advance since a 0.4-percent increase in June 2016. Nearly 70 percent of the February rise can 
be traced to prices for final demand services less trade, transportation, and warehousing, which 
climbed 0.5 percent. The indexes for final demand trade services and for final demand transportation 
and warehousing services advanced 0.4 percent and 0.3 percent, respectively.

Product detail: In February, a major factor in the increase in prices for final demand services was the 
index for traveler accommodation services, which rose 4.3 percent. The indexes for chemicals and 
allied products wholesaling; legal services; apparel wholesaling; health, beauty, and optical goods 
retailing; and architectural and engineering services also moved higher. In contrast, the index for 
automotive fuels and lubricants retailing fell 10.0 percent. Prices for wireless telecommunication 
services and for securities brokerage, dealing, and investment advice also decreased. (See table 4.)

Final demand goods: Prices for final demand goods moved up 0.3 percent in February, the sixth 
consecutive rise. Over half of the broad-based February increase can be traced to the index for final 
demand energy, which advanced 0.6 percent. Prices for final demand foods and for final demand 
goods less foods and energy moved up 0.3 percent and 0.1 percent, respectively. 

Product detail: Nearly 70 percent of the February increase in prices for final demand goods is 
attributable to the index for electric power, which climbed 1.6 percent. Prices for fresh and dry 
vegetables, jet fuel, liquefied petroleum gas, pharmaceutical preparations, and residual fuels also 
rose. Conversely, the index for gasoline fell 2.5 percent. Prices for beef and veal and for search, 
detection, navigation, and guidance systems and equipment 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

2016

Feb.

-0.2 0.1 -0.6 -0.1 -3.9 0.1 0.0 -0.4 -0.3 0.2 0.1 0.9

Mar.

-0.2 0.0 0.0 -1.2 0.9 0.1 -0.3 -0.8 0.0 0.0 -0.1 0.9

Apr.

0.3 0.3 0.4 -0.4 1.8 0.3 0.2 0.2 -0.1 0.3 0.2 1.0

May

0.2 -0.1 0.7 0.4 2.9 0.2 0.0 0.2 -0.5 -0.1 0.0 1.0

June

0.5 0.2 0.7 0.4 2.7 0.2 0.4 0.7 0.1 0.2 0.2 1.0

July

-0.1 0.2 -0.2 -0.7 -0.3 0.0 0.0 -0.8 0.4 0.4 0.0 1.0

Aug.

-0.2 0.1 -0.3 -1.1 -0.9 0.2 -0.2 -0.7 -0.3 0.1 0.0 1.2

Sept.

0.3 0.1 0.5 0.5 1.5 0.1 0.3 0.7 -0.7 0.2 0.6 1.3

Oct.(1)

0.3 0.1 0.3 -0.8 2.7 0.0 0.1 0.4 0.8 0.0 1.1 1.5

Nov.(1)

0.1 0.2 0.2 0.2 -0.1 0.3 0.1 -0.2 0.8 0.1 1.3 1.8

Dec.

0.2 0.1 0.6 0.5 1.8 0.3 0.1 0.0 -0.3 0.1 1.6 1.7

2017

Jan.

0.6 0.2 1.0 0.0 4.7 0.4 0.3 0.9 1.1 -0.1 1.6 1.6

Feb.

0.3 0.3 0.3 0.3 0.6 0.1 0.4 0.4 0.3 0.5 2.2 1.8

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

Intermediate Demand by Commodity Type

Within intermediate demand in February, prices for processed goods advanced 0.4 percent, the index 
for unprocessed goods fell 0.2 percent, and prices for services climbed 0.5 percent. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved up 0.4 percent in February, the sixth consecutive increase. About 80 percent of the 
February rise is attributable to a 0.5-percent advance in prices for processed materials less foods and 
energy. The index for processed energy goods climbed 0.6 percent. In contrast, prices for processed 
foods and feeds edged down 0.1 percent. For the 12 months ended in February, prices for processed 
goods for intermediate demand increased 5.0 percent, the largest advance since a 5.7-percent rise in 
the 12 months ended December 2011.

Product detail: A major factor in the February advance in the index for processed goods for 
intermediate demand was prices for primary basic organic chemicals, which increased 4.3 percent. 
The indexes for electric power, cold rolled steel sheet and strip, residual fuels, rubber and rubber 
products, and lubricating oil base stocks also moved higher. Conversely, prices for beef and veal fell 
3.7 percent. The indexes for gasoline and ethanol also decreased. (See table 5.)

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate 
demand declined 0.2 percent in February following a 3.8-percent rise in January. The decrease can be 
attributed to a 4.3-percent drop in the index for unprocessed energy materials. In contrast, prices for 
unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy advanced 
2.2 percent and 1.4 percent, respectively. For the 12 months ended in February, the index for 
unprocessed goods for intermediate demand jumped 19.4 percent, the largest 12-month advance 
since a 20.0-percent rise in September 2011.

Product detail: Leading the February decrease in the index for unprocessed goods for intermediate 
demand, prices for natural gas fell 18.0 percent. The indexes for coal, hay and hayseeds, raw milk, 
ungraded chicken eggs, and strawberries also moved lower. Conversely, prices for slaughter barrows 
and gilts advanced 18.2 percent. The indexes for crude petroleum and wastepaper also increased.

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.)

2016

Feb.

-0.8 0.4 -3.6 -0.3 -5.8 -1.7 -0.6 -5.8 0.7 -16.4

Mar.

-0.1 -0.4 0.1 0.0 -5.5 1.3 -1.2 3.6 2.6 -14.4

Apr.

0.4 -0.4 1.4 0.3 -4.6 2.2 -2.1 8.3 3.6 -13.0

May

0.8 1.0 2.9 0.3 -4.5 2.9 -0.4 7.6 3.4 -12.8

June

0.8 1.3 3.5 0.2 -4.1 2.5 1.3 6.4 -0.2 -10.8

July

0.2 -0.4 0.6 0.1 -3.7 0.8 -2.1 5.6 0.6 -7.6

Aug.

-0.1 -1.1 -1.3 0.3 -3.0 -2.1 -2.1 -4.0 0.3 -6.5

Sept.

0.3 -0.3 1.7 0.1 -1.3 -0.6 -2.1 2.7 -2.0 -4.9

Oct.(1)

0.3 -0.9 1.5 0.2 -0.6 -0.7 -5.9 5.8 -1.3 -4.4

Nov.(1)

0.4 0.4 -0.3 0.5 0.2 -0.2 2.8 -5.0 2.3 0.2

Dec.

0.4 0.6 1.7 0.2 1.8 8.4 6.0 14.9 3.5 13.2

2017

Jan.

1.1 0.5 4.9 0.3 3.8 3.8 2.2 6.7 3.2 17.6

Feb.

0.4 -0.1 0.6 0.5 5.0 -0.2 2.2 -4.3 1.4 19.4

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 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 moved up 0.5 
percent in February, the largest increase since a 1.3-percent advance in January 2016. Two-thirds of 
the broad-based rise in February can be traced to prices for services less trade, transportation, and 
warehousing for intermediate demand, which climbed 0.5 percent. The indexes for trade services for 
intermediate demand and for transportation and warehousing services for intermediate demand both 
increased 0.6 percent. For the 12 months ended in February, prices for services for intermediate 
demand rose 2.0 percent. 

Product detail: About one-quarter of the February advance in the index for services for intermediate 
demand is attributable to a 2.6-percent jump in prices for legal services. The indexes for chemicals 
and allied products wholesaling, business loans (partial), architectural and engineering services, 
nonresidential real estate rents, and U.S. postal services also moved higher. In contrast, prices for 
securities brokerage, dealing, and investment advice fell 1.4 percent. The indexes for television 
advertising time sales and for hardware, building materials, and supplies retailing 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.)

2016

Feb.

0.2 -0.3 0.2 0.4 1.9

Mar.

0.0 -0.1 0.0 0.0 1.6

Apr.

0.0 -0.1 -0.4 0.1 1.1

May

-0.1 0.3 -0.1 -0.3 1.1

June

0.4 1.1 0.2 0.4 1.4

July

0.4 0.2 0.3 0.5 1.7

Aug.

-0.2 -1.6 0.0 0.2 1.3

Sept.

-0.1 -0.3 -0.7 0.1 1.8

Oct.(1)

0.1 -0.2 0.3 0.0 2.4

Nov.(1)

0.1 0.1 0.8 0.1 2.3

Dec.

0.4 1.1 0.2 0.3 2.5

2017

Jan.

0.3 -0.2 -0.2 0.4 1.5

Feb.

0.5 0.6 0.6 0.5 2.0

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2016 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 0.5 percent in 
February, the sixth straight rise. In February, the index for total services inputs to stage 4 
intermediate demand climbed 0.8 percent, and prices for total goods inputs moved up 0.3 percent. 
(See table D.) Advances in the indexes for chemicals and allied products wholesaling, legal services, 
architectural and engineering services, electric power, business loans (partial), and nonresidential real 
estate rents outweighed decreases in the indexes for securities brokerage, dealing, and investment 
advice; hardware, building materials, and supplies retailing; and gasoline. (See table 6.) For the 12 
months ended in February, prices for stage 4 intermediate demand increased 2.6 percent, the largest 
rise since a 2.9-percent jump in the 12 months ended February 2012.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand climbed 0.8 percent in 
February, the fourth consecutive advance. In February, the index for total goods inputs to stage 3 
intermediate demand jumped 1.1 percent, and prices for total services inputs moved up 0.6 percent. 
Increases in the indexes for slaughter barrows and gilts, slaughter chickens, chemicals and allied 
products wholesaling, primary basic organic chemicals, jet fuel, and asphalt outweighed declines in 
prices for gasoline; raw milk; and securities brokerage, dealing, and investment advice. For the 12 
months ended in February, the index for stage 3 intermediate demand rose 3.9 percent, the largest 
advance since a 4.3-percent jump in the 12 months ended January 2012.

Stage 2 intermediate demand: The index for stage 2 intermediate demand was unchanged in 
February following a 1.2-percent increase a month earlier. In February, prices for total services 
inputs to stage 2 intermediate demand rose 0.4 percent. Conversely, the index for total goods inputs 
fell 0.5 percent. Higher prices for legal services, crude petroleum, cold rolled steel sheet and strip, 
liquefied petroleum gas, and plastic resins and materials offset lower prices for natural gas; securities 
brokerage, dealing, and investment advice; coal; wireless telecommunication services; and cable 
network advertising time sales. For the 12 months ended in February, the index for stage 2 
intermediate demand climbed 8.5 percent, the largest advance since surging 11.8 percent in 
September 2011.

Stage 1 intermediate demand: The index for stage 1 intermediate demand moved up 0.6 percent in 
February, the fourth straight increase. In February, the indexes for both total goods and total services 
inputs to stage 1 intermediate demand rose 0.6 percent. Advances in the indexes for primary basic 
organic chemicals, chemicals and allied products wholesaling, business loans (partial), wastepaper, 
electric power, and nonferrous scrap outweighed declining prices for natural gas, ethanol, and 
wireless telecommunication services. For the 12 months ended in February, the index for stage 1 
intermediate demand rose 6.8 percent, the largest increase since an 8.1-percent rise in the 12 months 
ended 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

2016

Feb.

-0.1 -0.3 0.1 -0.7 -1.5 0.4 -0.6 -1.7 0.2 -0.5 -1.2 0.1

Mar.

-0.1 0.0 -0.1 0.0 -0.1 0.0 0.4 0.5 0.2 0.3 0.8 -0.2

Apr.

0.2 0.1 0.2 0.0 0.2 -0.1 0.8 2.4 -0.1 0.9 1.3 0.2

May

0.2 0.4 -0.1 0.2 0.4 -0.1 1.2 3.1 0.1 0.9 2.1 -0.5

June

0.5 0.6 0.5 0.8 1.1 0.4 1.1 2.5 0.2 0.9 0.9 0.9

July

0.2 0.1 0.4 0.2 0.1 0.4 0.9 1.2 0.6 0.1 0.0 0.3

Aug.

-0.2 -0.1 -0.3 -0.6 -0.7 -0.4 -0.5 -1.1 -0.1 -0.5 -0.3 -0.7

Sept.

0.1 0.2 -0.1 -0.1 -0.1 -0.1 0.3 0.7 -0.1 0.1 0.2 -0.1

Oct.(1)

0.1 -0.1 0.2 -0.5 -0.8 -0.1 1.0 2.2 0.2 0.0 0.2 -0.3

Nov.(1)

0.1 0.3 0.0 0.6 0.9 0.2 -0.5 -1.2 0.1 0.8 1.1 0.4

Dec.

0.5 0.4 0.4 1.7 2.5 0.9 2.2 4.6 0.4 1.1 1.8 0.4

2017

Jan.

0.5 0.7 0.4 0.9 1.8 -0.2 1.2 2.2 0.4 1.5 2.3 0.4

Feb.

0.5 0.3 0.8 0.8 1.1 0.6 0.0 -0.5 0.4 0.6 0.6 0.6

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

 ________________
The Producer Price Index for March 2017 is scheduled to be released on Thursday, April 
13, 2017 at 8:30 a.m. (EDT).

                                              *****

Resampling of Industries

Effective with the release of data for February 2017, the Producer Price Index (PPI) includes data 
for 23 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 index additions, deletions, and recodes effective February 2017, see the 
current issue of the PPI Detailed Report at www.bls.gov/ppi/ppidr201702.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
221110        Electric power generation
221122        Electric power distribution
311911        Roasted nuts and peanut butter manufacturing
315280        Other cut and sew apparel manufacturing
321992        Prefabricated wood building manufacturing
322291        Sanitary paper product manufacturing
325194        Cyclic crude, intermediate, and gum and wood chemical manufacturing
326291        Rubber product manufacturing for mechanical use
331523        Nonferrous metal die-casting foundries
333517        Machine tool manufacturing
334111        Electronic computer manufacturing
334310        Audio and video equipment manufacturing
334417        Electronic connector manufacturing
339920        Sporting and athletic goods manufacturing
444130        Hardware stores
444190        Other building material dealers
445110        Supermarkets and other grocery stores
448210        Shoe stores
523920        Portfolio management
532111        Passenger car rental
532120        Truck, utility trailer, and RV rental and leasing
541219        Other accounting services
713910        Golf courses and country clubs


                                           *****

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Last Modified Date: March 14, 2017