Transmission of material in this release is embargoed until                          USDL 21-1315
8:30 a.m. (ET), Wednesday, July 14, 2021

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 2021


The Producer Price Index for final demand increased 1.0 percent in June, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.8 percent in May and 
0.6 percent in April. (See table A.) On an unadjusted basis, the final demand index moved up 7.3 
percent for the 12 months ended in June, the largest advance since 12-month data were first 
calculated in November 2010. 

Nearly 60 percent of the June advance in the final demand index can be traced to a 0.8-percent 
increase in prices for final demand services. The index for final demand goods moved up 1.2 
percent. 

Prices for final demand less foods, energy, and trade services rose 0.5 percent in June following 
an increase of 0.7 percent in May. For the 12 months ended in June, the index for final demand 
less foods, energy, and trade services moved up 5.5 percent, the largest advance since 12-month 
data were first calculated in August 2014.

Final Demand

Final demand services: Prices for final demand services rose 0.8 percent in June, the sixth 
consecutive advance. Seventy percent of the broad-based increase in June is attributable to margins 
for final demand trade services, which moved up 2.1 percent. (Trade indexes measure changes in 
margins received by wholesalers and retailers.) The indexes for final demand services less trade, 
transportation, and warehousing and for final demand transportation and warehousing services rose 
0.3 percent and 0.9 percent, respectively.

Product detail: Twenty percent of the June increase in the index for final demand services can be 
traced to margins for automobiles and automobile parts retailing, which rose 10.5 percent. The 
indexes for machinery and vehicle wholesaling; hardware, building materials, and supplies retailing; 
guestroom rental; professional and commercial equipment wholesaling; and transportation of 
passengers (partial) also moved higher. Conversely, margins for apparel wholesaling fell 6.0 percent. 
The indexes for machinery and equipment parts and supplies wholesaling and for gaming receipts 
(partial) also declined. (See table 4.)

Final demand goods: Prices for final demand goods increased 1.2 percent in June after rising 1.5 
percent in May. Nearly 60 percent of the broad-based advance in June can be traced to the index for 
final demand goods less foods and energy, which moved up 1.0 percent. Prices for final demand 
energy and for final demand foods rose 2.1 percent and 0.8 percent, respectively. 

Product detail: Within the index for final demand goods in June, prices for industrial chemicals rose 
4.5 percent. Prices for gasoline, meats, electric power, processed poultry, and motor vehicles also 
moved higher. In contrast, the index for oilseeds fell 11.7 percent. Prices for diesel fuel and for 
distilled and bottled liquor (excluding brandy) also declined.

Intermediate Demand by Commodity Type

Within intermediate demand in June, prices for processed goods rose 1.9 percent, the index for 
unprocessed goods increased 2.6 percent, and prices for services advanced 1.1 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved up 1.9 percent in June following a 2.8-percent rise in May. Leading the broad-based 
increase in June, prices for processed materials less foods and energy advanced 2.3 percent. The 
indexes for processed foods and feeds and for processed energy goods moved up 1.7 percent and 0.2 
percent, respectively. For the 12 months ended in June, prices for processed goods for intermediate 
demand jumped 22.6 percent, the largest increase since rising 23.6 percent for the 12 months ended 
in February 1975. 

Product detail: Nearly one-fifth of the June advance in the index for processed goods for 
intermediate demand can be traced to a 6.2-percent increase in prices for steel mill products. The 
indexes for industrial chemicals, electric power, fabricated structural metal products, plastic resins 
and materials, and meats also moved higher. Conversely, prices for natural gas to electric utilities 
dropped 18.9 percent. The indexes for primary nonferrous metals and for natural, processed, and 
imitation cheese also decreased. (See table 5.)

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate 
demand rose 2.6 percent in June following an 8.4-percent increase in May. Eighty percent of the 
broad-based advance in June can be attributed to the index for unprocessed energy materials, which 
moved up 5.8 percent. Prices for unprocessed foodstuffs and feedstuffs and for unprocessed nonfood 
materials less energy rose 0.7 percent and 0.9 percent, respectively. For the 12 months ended in June, 
the index for unprocessed goods for intermediate demand jumped 54.1 percent.

Product detail: Seventy percent of the June advance in prices for unprocessed goods for intermediate 
demand can be traced to a 9.9-percent jump in the index for crude petroleum. Prices for slaughter 
cattle, iron and steel, raw milk, slaughter poultry, and natural gas also moved up. In contrast, the 
index for corn fell 9.0 percent. Prices for oilseeds and for copper base scrap also decreased. 

Services for intermediate demand: The index for services for intermediate demand rose 1.1 percent 
in June, the seventh consecutive increase. Half of the broad-based advance in June can be attributed 
to margins for trade services for intermediate demand, which jumped 2.5 percent. Prices for services 
less trade, transportation, and warehousing for intermediate demand and for transportation and 
warehousing services for intermediate demand rose 0.4 percent and 2.1 percent, respectively. For the 
12 months ended in June, the index for services for intermediate demand increased 8.7 percent, the 
largest advance since 12-month data were first calculated in November 2010.

Product detail: Thirty percent of the June increase in prices for services for intermediate demand can 
be traced to margins for metals, minerals, and ores wholesaling, which rose 13.9 percent. The 
indexes for hardware, building materials, and supplies retailing; arrangement of freight and cargo 
transportation; television advertising time sales; residential property management fees; and deposit 
services (partial) also moved higher. Conversely, margins for machinery and equipment parts and 
supplies wholesaling fell 1.6 percent. The indexes for temporary help services and for securities 
brokerage, dealing, and investment advice also declined.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand advanced 1.1 percent in June 
following a 1.5-percent increase in May. In June, the index for total goods inputs to stage 4 
intermediate demand rose 1.5 percent, and prices for total services inputs moved up 0.6 percent. (See 
table D.)  Increases in the indexes for fabricated structural metal products; metals, minerals, and ores 
wholesaling; steel mill products; commercial electric power; hardware, building materials, and 
supplies retailing; and plastic products outweighed declines in the indexes for machinery and 
equipment parts and supplies wholesaling, corn, and natural gas to electric utilities. (See table 6.) For 
the 12 months ended in June, prices for stage 4 intermediate demand jumped 11.7 percent, the largest 
advance since 12-month data were first calculated in November 2010.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand increased 2.1 percent in 
June, the same as in May. In June, the index for total goods inputs to stage 3 intermediate demand 
rose 2.4 percent, and prices for total services inputs moved up 1.6 percent. Advances in the indexes 
for steel mill products; metals, minerals, and ores wholesaling; arrangement of freight and cargo 
transportation; slaughter cattle; raw milk; and plastic resins and materials outweighed decreasing 
prices for corn, diesel fuel, and temporary help services. For the 12 months ended in June, the index 
for stage 3 intermediate demand jumped 20.4 percent, the largest increase since 12-month data were 
first calculated in November 2010.

Stage 2 intermediate demand: The index for stage 2 intermediate demand advanced 2.1 percent in 
June following a 3.1-percent rise in May. In June, prices for total goods inputs to stage 2 intermediate 
demand increased 3.2 percent, and the index for total services inputs moved up 1.1 percent. Higher 
prices for crude petroleum; industrial chemicals; arrangement of freight and cargo transportation; gas 
fuels; maintenance and repair of nonresidential buildings (partial); and broadcast and network 
advertising time sales outweighed decreases in the indexes for oilseeds, primary nonferrous metals, 
and temporary help services. For the 12 months ended in June, prices for stage 2 intermediate 
demand jumped 21.8 percent, the largest rise since 12-month data were first calculated in November 
2010.

Stage 1 intermediate demand: The index for stage 1 intermediate demand increased 1.6 percent in 
June following a 2.6-percent rise in May. In June, prices for total services inputs to stage 1 
intermediate demand advanced 1.7 percent, and the index for total goods inputs moved up 1.6 
percent. Increases in the indexes for metals, minerals, and ores wholesaling; hardware, building 
materials, and supplies retailing; industrial chemicals; steel mill products; fabricated structural metal 
products; and iron and steel scrap outweighed falling prices for natural gas to electric utilities, corn, 
and machinery and equipment parts and supplies wholesaling. For the 12 months ended in June, the 
index for stage 1 intermediate demand jumped 21.2 percent.

________________
The Producer Price Index for July 2021 is scheduled to be released on Thursday, August 12, 2021 at 
8:30 a.m. (ET).

                                                   *****

                                          Resampling of Industries

Effective with the release of data for June 2021, the Producer Price Index (PPI) includes data for 
19 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 2021, see the current 
issue of the PPI Detailed Report online at www.bls.gov/ppi/detailed-report/ppi-detailed-report-
june-2021.pdf, or contact the PPI Section of Index Analysis and Public Information at ppi-
info@bls.gov or (202) 691-7705.

NAICS
Code                    Industry
236211        New industrial building construction
311340        Nonchocolate confectionery manufacturing
316992        Women's handbag and purse manufacturing
322110        Pulp mills
322130        Paperboard mills
322212        Folding paperboard box manufacturing
332410        Power boiler and heat exchanger manufacturing
332420        Metal tank, heavy gauge, manufacturing
332919        Other metal valve and pipe fitting manufacturing
333242        Semiconductor machinery manufacturing
333613        Mechanical power transmission equipment manufacturing
333923        Overhead cranes, hoists, and monorail systems manufacturing
334220        Broadcast and wireless communications equipment manufacturing
335210        Small electrical appliance manufacturing
336212        Truck trailer manufacturing
336411        Aircraft manufacturing
337910        Mattress manufacturing
424800        Beer, wine, and distilled alcoholic beverage merchant wholesalers
515210        Cable and other subscription programming