Transmission of material in this release is embargoed until                          USDL 21-1833
8:30 a.m. (ET), Thursday, October 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 - SEPTEMBER 2021


The Producer Price Index for final demand increased 0.5 percent in September, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.7 
percent in August and 1.0 percent in July. (See table A.) On an unadjusted basis, the final 
demand index rose 8.6 percent for the 12 months ended in September, the largest advance since 
12-month data were first calculated in November 2010.

Nearly 80 percent of the September increase in the index for final demand can be traced to a 1.3-
percent rise in prices for final demand goods. The index for final demand services moved up 0.2 
percent. 

Prices for final demand less foods, energy, and trade services moved up 0.1 percent in September 
after increasing 0.3 percent in August. For the 12 months ended in September, the index for final 
demand less foods, energy, and trade services rose 5.9 percent.

Final Demand

Final demand goods: The index for final demand goods moved up 1.3 percent in September, the 
largest increase since a 1.5-percent rise in May. In September, 40 percent of the broad-based advance 
can be attributed to a 2.8-percent jump in prices for final demand energy. The indexes for final 
demand goods less foods and energy and for final demand foods also moved up, 0.6 percent and 2.0 
percent, respectively.

Product detail: Leading the advance in the index for final demand goods, prices for gasoline rose 3.9 
percent. The indexes for beef and veal, residential electric power, fresh and dry vegetables, gas fuels, 
and primary basic organic chemicals also moved higher. In contrast, prices for plastic resins and 
materials decreased 3.9 percent. The indexes for corn and for residual fuels also fell. (See table 4.)

Final demand services: Prices for final demand services moved up 0.2 percent in September, the 
ninth consecutive advance. Leading the increase in September, the index for final demand trade 
services rose 0.9 percent. (Trade indexes measure changes in margins received by wholesalers and 
retailers.) Prices for final demand services less trade, transportation, and warehousing advanced 0.2 
percent. Conversely, the index for final demand transportation and warehousing services fell 4.0 
percent. 

Product detail: Over two-thirds of the September increase in prices for final demand services can be 
traced to margins for fuels and lubricants retailing, which rose 11.6 percent. The indexes for 
machinery and equipment wholesaling, hospital inpatient care, automobiles and automobile parts 
retailing, portfolio management, and truck transportation of freight also moved up. In contrast, prices 
for airline passenger services fell 16.9 percent. The indexes for health, beauty, and optical goods 
retailing and for bundled wired telecommunications access services also declined. 

Intermediate Demand by Commodity Type

Within intermediate demand in September, prices for processed goods moved up 1.3 percent, the 
index for unprocessed goods increased 2.4 percent, and prices for services rose 0.5 percent. (See 
tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand advanced 1.3 percent in September after climbing 1.0 percent in August. Sixty percent of the 
broad-based September increase can be traced to prices for processed materials less foods and 
energy, which moved up 1.1 percent. The indexes for processed energy goods and for processed 
foods and feeds rose 2.0 percent and 1.9 percent, respectively. For the 12 months ended in 
September, prices for processed goods for intermediate demand advanced 23.9 percent, the largest 
12-month increase since jumping 26.3 percent in January 1975.

Product detail: One-fifth of the September increase in the index for processed goods for intermediate 
demand can be attributed to a 9.8-percent rise in prices for primary basic organic chemicals. The 
indexes for hot rolled steel sheet and strip, diesel fuel, fabricated structural metal products, gasoline, 
and beef and veal also moved higher. Conversely, prices for softwood veneer and plywood dropped 
44.9 percent. The indexes for residual fuels and for pork also decreased. (See table 5.)

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate 
demand moved up 2.4 percent in September, the largest advance since rising 2.7 percent in June. 
Leading the September increase, the index for unprocessed energy materials climbed 8.5 percent. 
Prices for unprocessed foodstuffs and feedstuffs edged up 0.1 percent. In contrast, the index for 
unprocessed nonfood materials less energy declined 3.5 percent. For the 12 months ended in 
September, prices for unprocessed goods for intermediate demand jumped 45.9 percent.

Product detail: A major factor in the September increase in prices for unprocessed goods for 
intermediate demand was the index for natural gas, which advanced 14.4 percent. Prices for crude 
petroleum, slaughter poultry, slaughter barrows and gilts, slaughter steers and heifers, and aluminum 
base scrap also rose. Conversely, the index for carbon steel scrap fell 4.1 percent. Prices for corn and 
for raw milk also decreased.

Services for intermediate demand: The index for services for intermediate demand rose 0.5 percent 
in September, the tenth consecutive advance. In September, 40 percent of the broad-based increase 
can be traced to prices for services less trade, transportation, and warehousing for intermediate 
demand, which moved up 0.2 percent. Margins for trade services for intermediate demand and the 
index for transportation and warehousing services for intermediate demand also advanced, 0.6 
percent and 0.8 percent, respectively. For the 12 months ended in September, prices for services for 
intermediate demand rose 8.0 percent.

Product detail: A 4.9-percent increase in the index for business loans (partial) was a major factor in 
the September rise in prices for services for intermediate demand. The indexes for arrangement of 
freight and cargo transportation; machinery and equipment parts and supplies wholesaling; courier, 
messenger, and U.S. postal services; food wholesaling; and building materials, paint, and hardware 
wholesaling also moved higher. In contrast, prices for airline passenger services fell 16.9 percent. 
The indexes for metals, minerals, and ores wholesaling and for internet advertising sales (excluding 
print publishers) also declined. 

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand rose 0.4 percent in 
September following a 0.8-percent increase in August. In September, the index for total goods inputs 
to stage 4 intermediate demand climbed 0.5 percent, and prices for total services inputs moved up 0.4 
percent. (See table D.) Advances in the indexes for fabricated structural metal products; machinery 
and equipment parts and supplies wholesaling; courier, messenger, and U.S. postal services; hot 
rolled steel sheet and strip; beef and veal; and portfolio management outweighed declines in the 
indexes for airline passenger services; corn; and metals, minerals, and ores wholesaling. (See table 
6.) For the 12 months ended in September, prices for stage 4 intermediate demand rose 11.6 percent. 

Stage 3 intermediate demand: Prices for stage 3 intermediate demand advanced 1.0 percent in 
September, the same as in August. In September, the index for total goods inputs to stage 3 
intermediate demand rose 1.2 percent, and prices for total services inputs moved up 0.8 percent. 
Increases in the indexes for primary basic organic chemicals; slaughter poultry; hot rolled steel sheet 
and strip; arrangement of freight and cargo transportation; courier, messenger, and U.S. postal 
services; and slaughter barrows and gilts outweighed decreases in the indexes for corn; raw milk; and 
metals, minerals, and ores wholesaling. For the 12 months ended in September, prices for stage 3 
intermediate demand advanced 20.2 percent.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand rose 2.5 percent in 
September, the sixth consecutive increase. In September, the index for total goods inputs to stage 2 
intermediate demand jumped 4.0 percent, and prices for total services inputs climbed 1.1 percent. 
Advances in the indexes for gas fuels, crude petroleum, arrangement of freight and cargo 
transportation, business loans (partial), primary basic organic chemicals, and fuels and lubricants 
retailing outweighed falling prices for airline passenger services, carbon steel scrap, and oilseeds. For 
the 12 months ended in September, the index for stage 2 intermediate demand increased 22.7 percent. 

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved up 0.2 percent in 
September following a 0.9-percent increase in August. In September, the index for total goods inputs 
to stage 1 intermediate demand rose 0.9 percent. Conversely, prices for total services inputs fell 0.5 
percent. Advances in the indexes for primary basic organic chemicals; hot rolled steel sheet and strip; 
diesel fuel; fabricated structural metal products; building materials, paint, and hardware wholesaling; 
and courier, messenger, and U.S. postal services outweighed declines in the indexes for airline 
passenger services; corn; and hardware, building materials, and supplies retailing. For the 12 months 
ended in September, prices for stage 1 intermediate demand increased 19.9 percent.

________________
The Producer Price Index for October 2021 is scheduled to be released on Tuesday, 
November 9, 2021 at 8:30 a.m. (ET).

                                               *****

          PPI to Publish Interim Index Values and Publish All Indexes to 3 Decimal Places
      
Effective with the release of November 2021 Producer Price Index (PPI) data, on December 14, 
2021, the Bureau of Labor Statistics will publish interim index values for all preliminary PPI 
data, starting with values for August through October 2021. Within PPI, interim indexes are 
defined as recalculated indexes for the 3 months between the initial publication and final revision 
of PPI data. With this modification, data within the 3-month interim revision period will be 
updated and published on a monthly basis. This replaces the current policy of only publishing 
revised data once, when the data have been finalized 4 months after original publication. PPI 
data will continue to be finalized 4 months after initial publication. 
      
The publication of interim index values will allow for greater transparency regarding PPI 
revisions, and will align PPI official index publication with Bureau of Economic Analysis use of 
PPI interim index data as an input to Gross Domestic Product calculations. 

In addition, effective with the November 2021 data release in December 2021, the PPI will begin 
publishing index values to 3 decimal places of precision, starting with finalized data for July 
2021. The publication of index levels to 3 decimal places will allow data users greater precision 
in percent change calculations. Published PPI percent change calculations will continue to be 
rounded to one decimal place. The change to 3 decimal precision for indexes will apply to all PPI 
data: Industry, Commodity, FD-ID, and Input indexes. 

This change to the level of published precision will impact only the presentation of index 
numbers. Index values will continue to be calculated from underlying price information in the 
same manner as in the past, and no systematic upward or downward effect on the data will be 
introduced. With the implementation of this change, official PPI data prior to July 2021 will not 
be revised to reflect greater precision.

As a result of the publication of interim index values and index data to 3 decimal places of 
precision, effective with the publication of November 2021 PPI data in December 2021, PPI will 
introduce redesigned publication tables for both the PPI News Release and the PPI Detailed 
Report. For further information on these publication table changes see: 
www.bls.gov/ppi/notices/2021/ppi-to-publish-interim-index-values-to-3-decimal-places.htm, or 
contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 
691-7705.