Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 17-0418 
8:30 a.m. (EDT), Thursday, April 13, 2017

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                                 PRODUCER PRICE INDEXES - MARCH 2017


The Producer Price Index for final demand declined 0.1 percent in March, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.3 percent in 
February and 0.6 percent in January. (See table A.) On an unadjusted basis, the final demand 
index rose 2.3 percent for the 12 months ended March 2017, the largest increase since moving up 
2.4 percent for the 12 months ended March 2012.

In March 2017, three-fourths of the decrease in the final demand index is attributable to prices 
for final demand services, which fell 0.1 percent. The index for final demand goods also inched 
down 0.1 percent.

Prices for final demand less foods, energy, and trade services edged up 0.1 percent in March, the 
tenth straight advance. For the 12 months ended in March, the index for final demand less foods, 
energy, and trade services climbed 1.7 percent.

Final Demand

Final demand services: The index for final demand services inched down 0.1 percent in March 
following a 0.4-percent increase in February. Over half of the broad-based decline can be traced to 
prices for final demand services less trade, transportation, and warehousing, which decreased 0.1 
percent. Margins for final demand trade services also edged down 0.1 percent. (Trade indexes 
measure changes in margins received by wholesalers and retailers.) The index for final demand 
transportation and warehousing services fell 0.2 percent. 

Product detail: A 4.1-percent drop in the index for loan services (partial) led the March decline in 
prices for final demand services. The indexes for apparel, footwear, and accessories retailing; 
securities brokerage, dealing, and investment advice; health, beauty, and optical goods retailing; and 
truck transportation of freight also moved lower. In contrast, margins for fuels and lubricants 
retailing jumped 13.8 percent. The indexes for food and alcohol retailing, machinery and equipment 
parts and supplies wholesaling, and insurance also advanced. (See table 4.)

Final demand goods: The index for final demand goods inched down 0.1 percent in March 
following 6 straight increases. The decline can be traced to a 2.9-percent drop in prices for final 
demand energy. Conversely, the indexes for final demand goods less foods and energy and for final 
demand foods rose 0.4 percent and 0.9 percent, respectively. 

Product detail: Leading the March decrease in prices for final demand goods, the gasoline index fell 
8.3 percent. Prices for liquefied petroleum gas; jet fuel; hay, hayseeds, and oilseeds; and integrated 
microcircuits also moved lower. In contrast, the index for motor vehicles rose 0.9 percent. Prices for 
meats, processed poultry, and electric power also advanced.

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

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.

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

Nov.(1)

0.2 0.2 0.1 -0.6 0.2 0.3 0.3 0.2 0.4 0.2 1.3 1.8

Dec.(1)

0.1 0.1 0.6 1.3 1.5 0.3 -0.1 -0.4 0.1 0.0 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

Mar.

-0.1 0.1 -0.1 0.9 -2.9 0.4 -0.1 -0.1 -0.2 -0.1 2.3 1.7

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

Intermediate Demand by Commodity Type

Within intermediate demand in March, prices for processed goods advanced 0.1 percent, the index 
for unprocessed goods fell 4.2 percent, and prices for services declined 0.2 percent. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand inched up 0.1 percent in March, the seventh consecutive increase. The March advance was 
led by a 0.7-percent rise in prices for processed materials less foods and energy. The index for 
processed foods and feeds climbed 0.6 percent. Conversely, prices for processed energy goods 
decreased 2.7 percent. For the 12 months ended in March, the index for processed goods for 
intermediate demand moved up 5.3 percent, the largest increase since a 5.7-percent jump for the 12 
months ended December 2011.

Product detail: A major factor in the March advance in the index for processed goods for 
intermediate demand was prices for primary basic organic chemicals, which increased 8.5 percent. 
The indexes for steel mill products, thermoplastic resins and materials, asphalt, and meats also 
moved higher. In contrast, prices for gasoline fell 8.3 percent. The indexes for natural gas to electric 
utilities, natural cheese (except cottage cheese), and inedible fats and oils also decreased. (See table 
5.)

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate 
demand moved down 4.2 percent in March, the largest decline since a 4.8-percent drop in November 
2015. The March decrease can be attributed to the index for unprocessed energy materials, which fell 
14.6 percent. Conversely, prices for unprocessed nonfood materials less energy and for unprocessed 
foodstuffs and feedstuffs advanced 2.0 percent and 0.8 percent, respectively. For the 12 months 
ended in March, the index for unprocessed goods for intermediate demand jumped 12.7 percent.

Product detail: Over 70 percent of the March decrease in the index for unprocessed goods for 
intermediate demand can be traced to prices for natural gas, which fell 30.0 percent. The indexes for 
crude petroleum; hay, hayseeds, and oilseeds; slaughter barrows and gilts; corn; and construction 
sand, gravel, and crushed stone also moved lower. In contrast, prices for iron and steel scrap 
advanced 6.9 percent. The indexes for slaughter cattle and slaughter chickens 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

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.

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

Nov.(1)

0.2 -0.3 -0.1 0.4 0.1 0.6 5.2 -5.8 2.5 1.0

Dec.(1)

0.6 1.3 1.6 0.3 1.8 7.5 3.6 15.8 3.3 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

Mar.

0.1 0.6 -2.7 0.7 5.3 -4.2 0.8 -14.6 2.0 12.7

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 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 down 
0.2 percent in March following 5 consecutive increases. The decline was the result of a 0.4-percent 
decrease in prices for services less trade, transportation, and warehousing for intermediate demand. 
Conversely, margins for trade services for intermediate demand and the index for transportation and 
warehousing services for intermediate demand both advanced 0.3 percent. For the 12 months ended 
in March, prices for services for intermediate demand increased 1.7 percent.

Product detail: Leading the March decrease in the index for services for intermediate demand, prices 
for securities brokerage, dealing, and investment advice fell 6.8 percent. The indexes for business 
loans (partial); paper and plastics products wholesaling; legal services; building materials, paint, and 
hardware wholesaling; and truck transportation of freight also declined. In contrast, margins for 
machinery and equipment parts and supplies wholesaling advanced 2.7 percent. The indexes for 
services related to securities brokerage and dealing and for courier, messenger, and U.S. postal 
services also moved higher.

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

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 0.3 0.0 2.4

Nov.(1)

0.4 0.0 0.3 0.6 2.6

Dec.(1)

0.1 1.2 0.8 -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

Mar.

-0.2 0.3 0.3 -0.4 1.7

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

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand edged down 0.1 percent 
in March following 6 consecutive increases. In March, prices for total services inputs to stage 4 
intermediate demand moved down 0.2 percent. Conversely, the index for total goods inputs advanced 
0.2 percent. (See table D.) Decreases in the indexes for securities brokerage, dealing, and investment 
advice; business loans (partial); paper and plastics products wholesaling; gasoline; and diesel fuel 
outweighed increases in the indexes for primary basic organic chemicals; machinery and equipment 
parts and supplies wholesaling; hardware, building materials, and supplies retailing; and portfolio 
management. (See table 6.) For the 12 months ended in March, prices for stage 4 intermediate 
demand rose 2.5 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand inched up 0.1 percent in 
March, the fifth consecutive advance. In March, the index for total goods inputs to stage 3 
intermediate demand rose 0.3 percent. In contrast, prices for total services inputs moved down 0.2 
percent. Increases in the indexes for primary basic organic chemicals, slaughter cattle, slaughter 
chickens, steel mill products, and machinery and equipment parts and supplies wholesaling 
outweighed declines in prices for securities brokerage, dealing, and investment advice; gasoline; 
slaughter barrows and gilts; and jet fuel. For the 12 months ended in March, the index for stage 3 
intermediate demand increased 4.2 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 fell 1.9 percent in March, 
the largest decline since a 4.3-percent drop in January 2015. In March, prices for total goods inputs to 
stage 2 intermediate demand fell 4.4 percent, and the index for total services inputs was unchanged. 
Lower prices for natural gas; crude petroleum; securities brokerage, dealing, and investment advice; 
hay, hayseeds, and oilseeds; liquefied petroleum gas; and legal services outweighed increases in 
prices for thermoplastic resins and materials, steel mill products, and services related to securities 
brokerage and dealing. For the 12 months ended in March, the index for stage 2 intermediate demand 
advanced 6.0 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand edged down 0.1 percent 
in March following a 0.6-percent rise in the prior month. In March, prices for total services inputs to 
stage 1 intermediate demand fell 0.5 percent. Conversely, the index for total goods inputs moved up 
0.3 percent. Decreases in prices for securities brokerage, dealing, and investment advice; business 
loans (partial); natural gas; diesel fuel; and gasoline outweighed advances in the indexes for primary 
basic organic chemicals, iron and steel scrap, wastepaper, and fuels and lubricants retailing. For the 
12 months ended in March, the index for stage 1 intermediate demand increased 6.5 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
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs

2016

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

Nov.(1)

0.2 0.2 0.3 1.1 1.7 0.6 -0.4 -1.5 0.4 0.8 1.0 0.5

Dec.(1)

0.4 0.5 0.1 1.1 1.7 0.5 2.1 5.0 0.1 1.1 1.9 0.2

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

Mar.

-0.1 0.2 -0.2 0.1 0.3 -0.2 -1.9 -4.4 0.0 -0.1 0.3 -0.5

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

________________
The Producer Price Index for April 2017 is scheduled to be released on Thursday, May 11, 
2017 at 8:30 a.m. (EDT).


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Last Modified Date: April 13, 2017