Producer Price Index News Release summary

Transmission of material in this release is embargoed until USDL 22-1836
8:30 a.m. (ET) Wednesday, September 14, 2022

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Media contact: (202) 691-5902 * PressOffice@bls.gov

PRODUCER PRICE INDEXES - AUGUST 2022

The Producer Price Index for final demand fell 0.1 percent in August, seasonally adjusted, the
U.S. Bureau of Labor Statistics reported today. Final demand prices decreased 0.4 percent in July
and advanced 1.0 percent in June. (See table A.) On an unadjusted basis, the index for final
demand moved up 8.7 percent for the 12 months ended in August.

In August, the decrease in the index for final demand is attributable to a 1.2-percent decline in
prices for final demand goods. In contrast, the index for final demand services advanced 0.4
percent.

Prices for final demand less foods, energy, and trade services moved up 0.2 percent in August
following a 0.1-percent rise in July. For the 12 months ended in August, the index for final
demand less foods, energy, and trade services increased 5.6 percent.

Final Demand

Final demand goods: The index for final demand goods fell 1.2 percent in August after declining
1.7 percent in July. The August decrease can be traced to a 6.0-percent drop in prices for final
demand energy. Conversely, the index for final demand goods less foods and energy rose 0.2 percent,
while prices for final demand foods were unchanged.

Product detail: In August, over three-quarters of the decrease in prices for final demand goods is
attributable to the index for gasoline, which fell 12.7 percent. Prices for diesel fuel, jet fuel, chicken
eggs, primary basic organic chemicals, and home heating oil also declined. In contrast, the index for
construction machinery and equipment increased 2.6 percent. Prices for beverages and beverage
materials and for electric power also rose. (See table 2.)

Final demand services: The index for final demand services moved up 0.4 percent in August, the
fourth consecutive rise. Sixty percent of the August advance can be traced to a 0.8-percent increase
in margins for final demand trade services. (Trade indexes measure changes in margins received by
wholesalers and retailers.) Prices for final demand services less trade, transportation, and
warehousing also moved higher, rising 0.3 percent. Conversely, the index for final demand
transportation and warehousing services decreased 0.2 percent.

Product detail: Forty percent of the increase in prices for final demand services can be attributed to
margins for fuels and lubricants retailing, which rose 14.2 percent. The indexes for securities
brokerage, dealing, investment advice, and related services; loan services (partial); transportation of
passengers (partial); portfolio management; and chemicals and allied products wholesaling also
moved higher. In contrast, prices for truck transportation of freight decreased 1.9 percent. The
indexes for guestroom rental and for food and alcohol retailing 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.)
Month	Total final demand	Final demand less foods, energy, and trade	Total	Foods	Energy	Less foods and energy	Total	Trade	Transportation and warehousing	Other	Change in final demand from 12 months ago (unadj.)
2021
Aug.	0.9	0.4	1.0	2.1	1.3	0.6	0.8	2.1	0.8	0.2	8.7	6.2
Sept.	0.5	0.3	1.2	2.1	2.5	0.6	0.1	0.0	-1.0	0.3	8.8	6.1
Oct.	0.7	0.4	1.3	-0.1	5.0	0.7	0.2	0.5	1.1	-0.1	8.9	6.2
Nov.	1.0	0.8	0.9	1.3	0.9	0.8	1.0	1.3	2.8	0.6	9.9	7.0
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.(1)	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(1)	0.8	0.5	1.5	0.4	4.8	0.7	0.5	0.7	2.5	0.1	11.1	6.7
June(1)	1.0	0.3	2.2	-0.1	8.9	0.5	0.3	0.6	0.9	0.2	11.3	6.4
July(1)	-0.4	0.1	-1.7	1.3	-9.0	0.2	0.2	0.9	-0.8	0.0	9.8	5.8
Aug.	-0.1	0.2	-1.2	0.0	-6.0	0.2	0.4	0.8	-0.2	0.3	8.7	5.6
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2022 through July 2022 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in August, prices for processed goods decreased 1.7 percent, the index
for unprocessed goods rose 5.7 percent, and prices for services advanced 1.0 percent. (See tables B
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate
demand fell 1.7 percent in August after decreasing 2.2 percent in July. About two-thirds of the
August decline is attributable to a 5.2-percent drop in prices for processed energy goods. The index
for processed materials less foods and energy moved down 0.8 percent. Conversely, prices for
processed foods and feeds inched up 0.1 percent. For the 12 months ended in August, the index for
processed goods for intermediate demand increased 14.1 percent.

Product detail: Over 40 percent of the August decline in the index for processed goods for
intermediate demand can be traced to an 11.4-percent decrease in diesel fuel prices. The indexes for
primary basic organic chemicals; gasoline; steel mill products; jet fuel; and natural, processed, and
imitation cheese also moved lower. In contrast, prices for prepared animal feeds advanced 1.2
percent. The indexes for natural gas to electric utilities and for paper boxes and containers also rose.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate
demand moved up 5.7 percent in August, the largest advance since increasing 9.8 percent in
February. Leading the August rise, prices for unprocessed energy materials jumped 13.5 percent. The
index for unprocessed nonfood materials less energy advanced 1.0 percent. Conversely, prices for
unprocessed foodstuffs and feedstuffs declined 1.9 percent. For the 12 months ended in August, the
index for unprocessed goods for intermediate demand rose 36.1 percent.

Product detail: Leading the August increase in prices for unprocessed goods for intermediate
demand, the natural gas index surged 35.3 percent. Prices for livestock, corn, oilseeds, nonferrous
metal ores, and nonferrous scrap also moved higher. In contrast, the index for raw milk fell 8.8
percent. Prices for crude petroleum and for iron and steel scrap 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
Month	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
Aug.	1.0	1.5	0.0	1.1	23.0	1.4	3.0	0.2	1.4	52.5
Sept.	1.2	1.5	2.1	0.9	23.8	2.8	0.8	8.0	-1.8	48.5
Oct.	2.4	-0.4	6.7	1.6	25.7	6.0	-2.2	17.7	-1.5	55.5
Nov.	1.5	0.1	2.5	1.4	26.6	2.3	1.3	2.3	3.4	49.6
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.(1)	2.0	3.2	4.4	1.2	22.0	5.5	4.2	9.3	1.3	50.1
May(1)	2.3	1.1	4.5	1.8	21.6	5.4	0.2	14.6	-4.2	46.4
June(1)	2.0	0.0	8.7	0.1	21.9	4.8	-0.4	11.2	-2.3	50.2
July(1)	-2.2	0.2	-8.6	-0.2	17.4	-10.7	-0.8	-17.8	-7.0	30.4
Aug.	-1.7	0.1	-5.2	-0.8	14.1	5.7	-1.9	13.5	1.0	36.1
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2022 through July 2022 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 rose 1.0 percent 
in August, the largest advance since moving up 1.3 percent in March. Leading the August increase, 
prices for services less trade, transportation, and warehousing for intermediate demand climbed 1.3 
percent. Margins for trade services for intermediate demand moved up 0.6 percent. Conversely, the 
index for transportation and warehousing services for intermediate demand declined 0.1 percent. For 
the 12 months ended in August, prices for services for intermediate demand advanced 6.3 percent.

Product detail: Thirty percent of the August increase in the index for services for intermediate 
demand is attributable to a 5.5-percent rise in prices for nonresidential real estate rents. The indexes 
for securities brokerage, dealing, investment advice, and related services; loan services (partial); fuels 
and lubricants retailing; machinery and equipment parts and supplies wholesaling; and arrangement 
of freight and cargo transportation also moved higher. In contrast, prices for warehousing, storage, 
and related services fell 5.3 percent. The indexes for television advertising time sales and for metals, 
minerals, and ores 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
Month	Total	Trade	Transportation and warehousing	Other	Total, change from 12 months ago (unadj.)
2021
Aug.	0.4	1.9	0.8	-0.2	9.0
Sept.	0.3	-1.2	2.5	0.4	8.2
Oct.	0.0	0.6	0.5	-0.3	7.4
Nov.	0.6	-0.6	1.0	0.9	8.1
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.(1)	0.9	1.0	1.7	0.6	8.0
May(1)	0.5	0.6	0.6	0.4	7.8
June(1)	-0.4	-1.1	0.1	-0.3	6.2
July(1)	0.2	-0.1	1.0	0.2	5.8
Aug.	1.0	0.6	-0.1	1.3	6.3
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2022 through July 2022 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 rose 0.5 percent in August
following a 0.4-percent decline in July. In August, the index for total services inputs to stage 4
intermediate demand advanced 1.2 percent. Conversely, prices for total goods inputs declined 0.2
percent. (See table D.) Increases in the indexes for nonresidential real estate rents; securities
brokerage, dealing, investment advice, and related services; loan services (partial); machinery and
equipment parts and supplies wholesaling; portfolio management; and electric power outweighed
falling prices for gasoline; diesel fuel; and warehousing, storage, and related services. For the 12
months ended in August, the index for stage 4 intermediate demand rose 8.7 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand moved down 1.8 percent in
August, the largest decrease since falling 5.4 percent in April 2020. In August, the index for total
goods inputs to stage 3 intermediate demand declined 3.6 percent. In contrast, prices for total
services inputs rose 0.3 percent. Declines in the indexes for diesel fuel, primary basic organic
chemicals, raw milk, jet fuel, steel mill products, and television advertising time sales outweighed
increasing prices for loan services (partial), livestock, and corn. For the 12 months ended in August,
the index for stage 3 intermediate demand advanced 12.1 percent.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand moved up 3.7 percent in
August, the largest increase since rising 4.3 percent in February. In August, the index for total goods
inputs to stage 2 intermediate demand climbed 6.0 percent, and prices for total services inputs
advanced 1.3 percent. Increases in the indexes for natural gas; loan services (partial); fuels and
lubricants retailing; oilseeds; securities brokerage, dealing, investment advice, and related services;
and arrangement of freight and cargo transportation outweighed falling prices for crude petroleum,
primary basic organic chemicals, and guestroom rental. For the 12 months ended in August, the
index for stage 2 intermediate demand jumped 20.4 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved down 0.4 percent in
August after decreasing 1.7 percent in July. In August, the index for total goods inputs to stage 1
intermediate demand fell 1.7 percent. Conversely, prices for total services inputs increased 1.1
percent. Declines in the indexes for diesel fuel, primary basic organic chemicals, iron and steel,
gasoline, residual fuels, and guestroom rental outweighed rising prices for securities brokerage,
dealing, investment advice, and related services; nonresidential real estate rents; and natural gas to
electric utilities. For the 12 months ended in August, the index for stage 1 intermediate demand
advanced 10.4 percent.

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
Month	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs
2021
Aug.	0.7	0.9	0.6	1.0	1.6	0.4	0.7	0.9	0.5	0.8	1.3	0.5
Sept.	0.4	0.8	0.1	1.1	1.2	1.0	2.2	3.6	0.9	0.2	0.7	-0.3
Oct.	0.6	1.3	0.0	1.0	1.9	0.2	3.7	7.9	-0.1	1.1	2.5	-0.3
Nov.	1.1	1.5	0.7	0.8	1.2	0.4	1.2	1.7	0.7	1.3	2.0	0.5
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)	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(1)	0.9	1.4	0.4	1.6	2.6	0.5	3.6	6.8	0.2	1.5	2.3	0.6
June(1)	0.3	1.0	-0.5	0.5	1.4	-0.5	3.0	5.4	0.1	0.9	2.3	-0.8
July(1)	-0.4	-0.9	0.0	-1.2	-2.5	0.4	-5.2	-10.2	0.9	-1.7	-2.9	-0.3
Aug.	0.5	-0.2	1.2	-1.8	-3.6	0.3	3.7	6.0	1.3	-0.4	-1.7	1.1
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2022 through July 2022 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for September 2022 is scheduled to be released on Wednesday, October 12, 2022, 
at 8:30 a.m. (ET).

Technical notes

Table 1. Producer price index percent changes and weights for Final Demand - Intermediate Demand groupings, seasonally adjusted

Table 2. Producer price index percent changes for selected commodity groupings by Final Demand - Intermediate Demand category, seasonally adjusted

Table 3. Producer price indexes Final Demand - Intermediate Demand groupings, seasonally adjusted

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Last Modified Date: September 14, 2022