Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 17-0215 
8:30 a.m. (EST), Tuesday, February 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 - JANUARY 2017


The Producer Price Index for final demand increased 0.6 percent in January, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.2 percent in 
December and 0.5 percent in November. (See table A.) On an unadjusted basis, the final demand 
index climbed 1.6 percent for the 12 months ended January 2017.

In January, over 60 percent of the advance in the final demand index is attributable to a 1.0-
percent increase in prices for final demand goods. The index for final demand services moved up 
0.3 percent.

Prices for final demand less foods, energy, and trade services rose 0.2 percent in January after 
inching up 0.1 percent in December. For the 12 months ended in January, the index for final 
demand less foods, energy, and trade services climbed 1.6 percent.

Final Demand

Final demand goods: Prices for final demand goods moved up 1.0 percent in January, the largest 
rise since a 1.0-percent advance in May 2015. Three-fourths of the January increase can be traced to 
the index for final demand energy, which jumped 4.7 percent. Prices for final demand goods less 
foods and energy climbed 0.4 percent. The index for final demand foods was unchanged.

Product detail: Over half of the January increase in prices for final demand goods is attributable to 
the gasoline index, which advanced 12.9 percent. The indexes for pharmaceutical preparations, iron 
and steel scrap, home heating oil, residential natural gas, and pork also moved higher. In contrast, 
prices for beef and veal fell 7.2 percent. The indexes for light motor trucks and for candy and nuts 
also decreased. (See table 4.)

Final demand services: The index for final demand services rose 0.3 percent in January after edging 
up 0.1 percent in December. Over 80 percent of the January increase can be traced to margins for 
final demand trade services, which advanced 0.9 percent. (Trade indexes measure changes in margins 
received by wholesalers and retailers.) The index for final demand transportation and warehousing 
services climbed 1.1 percent. Conversely, prices for final demand services less trade, transportation, 
and warehousing inched down 0.1 percent.

Product detail: Nearly half of the January increase in the index for final demand services can be 
attributed to margins for apparel, jewelry, footwear, and accessories retailing, which advanced 4.8 
percent. The indexes for fuels and lubricants retailing, loan services (partial), airline passenger 
services, food and alcohol retailing, and services related to securities brokerage and dealing also 
moved higher. In contrast, prices for guestroom rental fell 3.3 percent. The indexes for apparel 
wholesaling and bundled wired telecommunications access services 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

Jan.

0.5 0.4 -0.3 1.1 -3.2 0.1 0.9 1.7 0.2 0.5 0.0 0.8

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.

-0.1 0.1 0.3 -1.1 2.5 0.1 -0.4 -1.2 1.5 -0.1 0.8 1.6

Nov.

0.5 0.2 0.2 0.5 0.1 0.2 0.5 1.3 0.1 0.2 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

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2016. In addition, indexes for September 2016 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Intermediate Demand by Commodity Type

Within intermediate demand in January, prices for processed goods advanced 1.1 percent, the index 
for unprocessed goods rose 3.8 percent, and prices for services climbed 0.3 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved up 1.1 percent in January, the largest increase since a similar 1.1-percent rise in 
February 2013. Over three-fourths of the January advance is attributable to a 4.9-percent rise in 
prices for processed energy goods. The indexes for processed materials less foods and energy and for 
processed foods and feeds increased 0.3 percent and 0.5 percent, respectively. For the 12 months 
ended in January, prices for processed goods for intermediate demand climbed 3.8 percent, the 
largest rise since a 4.3-percent advance in the 12 months ended January 2012.

Product detail: A major factor in the January advance in the index for processed goods for 
intermediate demand was prices for industrial electric power, which increased 7.7 percent. The 
indexes for gasoline, utility natural gas, basic organic chemicals, diesel fuel, and pork also moved 
higher. Conversely, prices for beef and veal dropped 7.2 percent. The indexes for commercial electric 
power and for thermoplastic resins and plastics materials also decreased. (See table 5.)

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate 
demand rose 3.8 percent in January following an 8.4-percent jump in December. In January, about 60 
percent of the broad-based increase is attributable to a 6.7-percent advance in the index for 
unprocessed energy materials. Prices for unprocessed foodstuffs and feedstuffs and for unprocessed 
nonfood materials less energy also moved higher, rising 2.2 percent and 3.2 percent, respectively. For 
the 12 months ended in January, the index for unprocessed goods for intermediate demand increased 
17.6 percent, the largest 12-month advance since a 20.0-percent rise in September 2011.

Product detail: Two-thirds of the January increase in the index for unprocessed goods for 
intermediate demand can be traced to prices for natural gas, which rose 23.6 percent. The indexes for 
iron and steel scrap, coal, slaughter hogs, raw milk, and slaughter steers and heifers also rose. In 
contrast, prices for crude petroleum fell 5.5 percent. The indexes for slaughter poultry and gold ores 
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.)

2016

Jan.

-0.9 -0.4 -3.2 -0.4 -5.3 0.0 4.1 -5.5 -0.5 -17.5

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.

0.4 -1.2 1.5 0.3 -0.5 -0.5 -5.6 5.9 -1.3 -4.2

Nov.

0.3 0.8 -0.3 0.4 0.2 -0.4 2.4 -5.1 2.2 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

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2016. In addition, indexes for September 2016 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Services for intermediate demand: The index for services for intermediate demand advanced 0.3 
percent in January, the fourth consecutive increase. The January rise can be traced to prices for 
services less trade, transportation, and warehousing for intermediate demand, which moved up 0.4 
percent. Conversely, margins for trade services for intermediate demand and the index for 
transportation and warehousing services for intermediate demand both decreased 0.2 percent. For the 
12 months ended in January, prices for services for intermediate demand advanced 1.5 percent.

Product detail: Most of the increase in the index for services for intermediate demand can be 
attributed to prices for business loans (partial), which rose 5.5 percent. The indexes for services 
related to securities brokerage and dealing, portfolio management, airline passenger services, fuels 
and lubricants retailing, and legal services also increased. In contrast, margins for building materials, 
paint, and hardware wholesaling fell 3.2 percent. Prices for advertising space in periodicals and 
newspapers and for ground courier and messenger services also moved lower.

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

Jan.

1.3 0.5 -0.5 1.9 1.5

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.

0.1 -0.2 1.2 -0.2 2.3

Nov.

0.1 0.1 0.0 0.3 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

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2016. In addition, indexes for September 2016 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand increased 0.5 percent in 
January, the fifth consecutive rise. In January, prices for total goods inputs to stage 4 intermediate 
demand moved up 0.7 percent, and the index for total services inputs advanced 0.4 percent. (See 
table D.) Increases in prices for industrial electric power, business loans (partial), gasoline, portfolio 
management, services related to securities brokerage and dealing, and diesel fuel outweighed 
decreases in the indexes for building materials, paint, and hardware wholesaling; beef and veal; and 
motor vehicle parts. For the 12 months ended in January, prices for stage 4 intermediate demand rose 
1.8 percent, the largest increase since a 1.8-percent advance in the 12 months ended February 2013.

Stage 3 intermediate demand: The index for stage 3 intermediate demand moved up 0.9 percent in 
January, the third consecutive increase. In January, prices for total goods inputs to stage 3 
intermediate demand advanced 1.8 percent. Conversely, the index for total services inputs moved 
down 0.2 percent. Increases in prices for gasoline, slaughter hogs, raw milk, business loans (partial), 
services related to securities brokerage and dealing, and slaughter steers and heifers outweighed 
declines in the indexes for advertising space sales in periodicals and newspapers, ground courier and 
messenger services, and slaughter poultry. For the 12 months ended in January, prices for stage 3 
intermediate demand rose 2.5 percent, the largest advance since a 2.8-percent increase in October 
2014.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 1.2 percent in 
January following a 2.2-percent rise in December. In January, prices for total goods inputs to stage 2 
intermediate demand advanced 2.2 percent, and the index for total services inputs moved up 0.4 
percent. Higher prices for natural gas; services related to securities brokerage and dealing; coal; 
portfolio management; airline passenger services; and hay, hayseeds, and oilseeds outweighed 
declines in the indexes for crude petroleum, ground courier and messenger services, and 
thermoplastic resins and plastics materials. For the 12 months ended in January, the index for stage 2 
intermediate demand advanced 7.9 percent, the largest rise since an 8.0-percent increase in 
November 2011.

Stage 1 intermediate demand: The index for stage 1 intermediate demand advanced 1.5 percent in 
January, the fifth consecutive rise. In January, prices for total goods inputs to stage 1 intermediate 
demand moved up 2.3 percent, and the index for total services inputs increased 0.4 percent. Higher 
prices for iron and steel scrap, basic organic chemicals, business loans (partial), diesel fuel, gasoline, 
and natural gas outweighed declines in the indexes for passenger car rental; building materials, paint, 
and hardware wholesaling; and crude petroleum. For the 12 months ended in January, the index for 
stage 1 intermediate demand advanced 5.6 percent, the largest rise since a 5.7-percent increase in the 
12 months ended November 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

Jan.

0.3 -0.4 1.0 0.2 -0.5 0.9 -0.1 -2.2 1.3 0.0 -1.2 1.5

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.

0.1 0.0 0.0 -0.4 -0.6 0.0 1.1 2.3 0.3 0.2 0.3 -0.1

Nov.

0.1 0.2 0.2 0.5 0.7 0.1 -0.6 -1.3 0.0 0.6 1.0 0.2

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

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2016. In addition, indexes for September 2016 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

________________
The Producer Price Index for February 2017 is scheduled to be released on Tuesday, 
March 14, 2017 at 8:30 a.m. (EDT).


                                             *****

                           Recalculation of Seasonal Adjustment Factors

Effective with this release, seasonal adjustment factors have been recalculated to reflect price-
movement patterns during 2016 for the Final Demand-Intermediate Demand (FD-ID) System and 
commodity-grouping indexes. This routine annual recalculation may affect previously published 
seasonally adjusted indexes and percent changes for January 2012 through December 2016. 

Revised seasonally adjusted data for this period, as well as seasonal adjustment factors for directly 
adjusted commodity indexes to be used through December 2017, were released February 10, 2017. 
To obtain this information, contact the Division of Industrial Prices and Price Indexes, Section of 
Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705, or visit the Producer 
Price Index homepage at https://www.bls.gov/ppi.

Tables E and F below provide monthly seasonally adjusted percent changes for major FD-ID system 
indexes in 2016, based on former and recalculated seasonal factors. These percent changes include 
final price data through August 2016 and may differ from values shown in tables A through D of this 
release, which include final price data through September 2016.

Table E.  Over-the-month percent changes in major final demand indexes, seasonally adjusted, using 
former and recalculated seasonal factors for 2016

               Final           Final demand       Final demand    Final demand less foods,
               demand             goods             services     energy, and trade services
Month      Former  Recalc.    Former  Recalc.    Former  Recalc.      Former   Recalc.
January      0.4     0.5       -0.5    -0.3        0.9     0.9          0.3      0.4
February     -.3     -.2        -.7     -.6        -.1      .0           .1       .1
March        -.2     -.2         .0      .0        -.3     -.3           .1       .0
April         .3      .3         .4      .4         .2      .2           .2       .3
May           .3      .2         .8      .7         .0      .0           .0      -.1
June          .5      .5         .7      .7         .4      .4           .3       .2
July         -.2     -.1        -.2     -.2         .0      .0           .2       .2
August       -.2     -.2        -.4     -.3        -.3     -.2           .0       .1
September     .3      .3         .5      .5         .3      .3           .3       .3
October       .0     -.1         .4      .3        -.3     -.4          -.1      -.1
November      .4      .5         .2      .2         .5      .5           .2       .2
December      .3      .2         .7      .6         .1      .1           .1       .1
 

Table F.  Over-the-month percent changes in major intermediate demand indexes, seasonally 
adjusted, using former and recalculated seasonal factors for 2016

            Processed goods for       Unprocessed goods for          Services for
            intermediate demand        intermediate demand        intermediate demand
Month      Former   Recalculated      Former   Recalculated      Former   Recalculated
January     -0.9        -0.9            0.2         0.0            1.3         1.3
February     -.9         -.8           -1.9        -1.7             .2          .2
March         .0         -.1            1.6         1.3             .0          .0
April         .3          .4            2.2         2.2             .0          .0
May           .9          .8            3.2         2.9            -.2         -.1
June          .9          .8            2.3         2.5             .4          .4
July          .2          .2             .1          .8             .4          .4
August       -.1         -.1           -2.0        -2.1            -.2         -.2
September     .4          .4            -.7         -.5             .6          .6
October       .3          .3            -.6         -.6            -.6         -.6
November      .3          .3             .0         -.4             .2          .1
December      .5          .4            8.3         8.4             .4          .4


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Last Modified Date: February 14, 2017