Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 18-0743 
8:30 a.m. (EDT), Wednesday, May 9, 2018

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                            PRODUCER PRICE INDEXES - APRIL 2018


The Producer Price Index for final demand rose 0.1 percent in April, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.3 percent in 
March and 0.2 percent in February. (See table A.) On an unadjusted basis, the final demand 
index increased 2.6 percent for the 12 months ended in April.

In April, the index for final demand services advanced 0.1 percent, and prices for final demand 
goods were unchanged.

The index for final demand less foods, energy, and trade services edged up 0.1 percent in April 
after increasing 0.4 percent in March. For the 12 months ended in April, prices for final demand 
less foods, energy, and trade services advanced 2.5 percent.

Final Demand

Final demand services: Prices for final demand services inched up 0.1 percent in April, the fourth 
straight rise. The advance in April was led by the index for final demand trade services, which 
increased 0.2 percent. (Trade indexes measure changes in margins received by wholesalers and 
retailers.) Prices for final demand transportation and warehousing services rose 0.6 percent. 
Conversely, the index for final demand services less trade, transportation, and warehousing services 
declined 0.1 percent. 

Product detail: A major factor in the April advance in prices for final demand services was the index 
for machinery, equipment, parts, and supplies wholesaling, which climbed 0.9 percent. The indexes 
for services related to securities brokerage and dealing (partial), residential real estate loans (partial), 
airline passenger services, and wireless telecommunication services also moved higher. In contrast, 
prices for traveler accommodation services fell 3.2 percent. The indexes for health, beauty, and 
optical goods retailing; legal services; and apparel wholesaling also decreased. (See table 4.)

Final demand goods: Prices for final demand goods were unchanged in April after increasing 0.3 
percent in March. In April, a 0.3-percent rise in the index for final demand goods less foods and 
energy and a 0.1-percent advance in prices for final demand energy offset a 1.1-percent drop in the 
index for final demand foods. 

Product detail: Among prices for final demand goods in April, the index for tobacco products 
jumped 2.6 percent. The indexes for carbon steel scrap; search, detection, navigation, and guidance 
systems; pharmaceutical preparations; diesel fuel; and prepared poultry products also increased. 
Conversely, prices for fresh and dry vegetables fell 17.8 percent. The indexes for chicken eggs, beef 
and veal, residential electric power, and basic organic chemicals also moved lower.

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

2017

Apr.

0.4 0.5 0.5 1.3 0.0 0.3 0.4 0.4 0.9 0.5 2.5 2.0

May

0.1 0.1 -0.5 -0.8 -2.0 -0.1 0.4 0.8 0.2 0.2 2.3 2.1

June

0.1 0.2 0.0 0.3 -0.1 0.1 0.1 -0.3 0.2 0.2 1.9 2.1

July

0.1 0.1 0.0 0.0 -0.3 0.1 0.1 0.2 -0.4 0.2 2.0 2.0

Aug.

0.3 0.1 0.5 -0.7 3.1 0.2 0.2 0.5 0.2 0.0 2.4 1.9

Sept.

0.3 0.2 0.6 -0.1 2.9 0.2 0.2 -0.2 1.3 0.1 2.6 2.1

Oct.

0.4 0.4 0.3 0.3 0.2 0.3 0.5 0.9 0.7 0.4 2.8 2.4

Nov.

0.4 0.2 0.8 0.2 3.5 0.3 0.1 -0.3 0.9 0.2 3.0 2.4

Dec.(1)

0.0 0.1 0.1 -0.2 0.2 0.1 -0.2 -0.4 -0.6 0.2 2.5 2.3

2018

Jan.(1)

0.5 0.4 0.7 -0.1 3.5 0.3 0.5 0.7 0.0 0.4 2.7 2.5

Feb.

0.2 0.4 -0.1 -0.4 -0.5 0.2 0.3 -0.2 0.9 0.3 2.8 2.7

Mar.

0.3 0.4 0.3 2.2 -2.1 0.3 0.3 0.2 0.6 0.3 3.0 2.9

Apr.

0.1 0.1 0.0 -1.1 0.1 0.3 0.1 0.2 0.6 -0.1 2.6 2.5

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2017 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in April, prices for processed goods increased 0.5 percent, the index for 
unprocessed goods advanced 0.9 percent, and prices for services rose 0.3 percent. (See tables B and 
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved up 0.5 percent in April following a 0.3-percent decline in March. Over half of the 
broad-based increase can be traced to prices for processed energy goods, which advanced 1.3 
percent. The indexes for processed materials less foods and energy and for processed foods and feeds 
also moved higher, both increasing 0.3 percent. For the 12 months ended in April, prices for 
processed goods for intermediate demand advanced 4.7 percent.

Product detail: In April, a major factor in the increase in prices for processed goods for intermediate 
demand was the index for natural gas to electric utilities, which climbed 5.4 percent. Prices for steel 
mill products; diesel fuel; commercial electric power; structural, architectural, and pre-engineered 
metal products; and processed eggs also moved higher. In contrast, the index for basic organic 
chemicals fell 2.1 percent. Prices for beef and veal and for asphalt also decreased. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand advanced 0.9 percent in April following a 4.8-percent decline in March. Most of the increase 
is attributable to prices for unprocessed energy materials, which rose 3.8 percent. The index for 
unprocessed nonfood materials less energy climbed 0.7 percent. Conversely, prices for unprocessed 
foodstuffs and feedstuffs declined 2.1 percent. For the 12 months ended in April, the index for 
unprocessed goods for intermediate demand advanced 3.2 percent.

Product detail: Leading the April increase in the index for unprocessed goods for intermediate 
demand, crude petroleum prices jumped 7.2 percent. The indexes for slaughter chickens; raw milk; 
carbon steel scrap; hay, hayseeds, and oilseeds; and iron ores also advanced. In contrast, prices for 
slaughter cattle fell 6.3 percent. The indexes for slaughter hogs and wastepaper 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.)

2017

Apr.

0.5 -0.3 1.3 0.4 5.4 2.0 -0.8 7.7 -0.6 12.8

May

0.0 0.5 -0.2 -0.1 4.6 -1.1 1.4 -4.1 -0.7 8.5

June

0.2 0.7 0.3 0.1 3.8 0.0 0.8 -1.4 0.6 5.8

July

-0.1 -0.2 0.1 -0.1 3.6 0.3 0.6 -0.8 0.8 6.0

Aug.

0.5 -0.3 1.4 0.4 4.1 -0.7 -3.6 1.3 1.3 7.0

Sept.

0.6 -0.8 2.5 0.3 4.5 0.5 -1.0 1.4 1.4 7.7

Oct.

0.6 0.5 1.6 0.4 4.8 0.5 1.2 1.8 -2.6 8.5

Nov.

0.8 -0.2 2.5 0.5 5.4 2.6 2.5 4.7 -0.2 11.0

Dec.(1)

0.3 0.1 0.8 0.2 5.0 1.3 -0.7 3.3 1.8 5.0

2018

Jan.(1)

0.7 -0.1 2.0 0.5 4.6 1.1 -1.1 2.0 3.5 2.5

Feb.

0.7 1.2 0.8 0.7 4.8 2.8 2.1 5.4 -0.3 5.6

Mar.

-0.3 1.4 -3.1 0.3 4.6 -4.8 -1.0 -11.6 1.5 4.2

Apr.

0.5 0.3 1.3 0.3 4.7 0.9 -2.1 3.8 0.7 3.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2017 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 increased 0.3 
percent in April, the third consecutive rise. Over 40 percent of the broad-based advance in April can 
be traced to margins for trade services for intermediate demand, which moved up 0.9 percent. Prices 
for services less trade, transportation, and warehousing for intermediate demand and for 
transportation and warehousing services for intermediate demand climbed 0.2 percent and 0.5 
percent, respectively. For the 12 months ended in April, the index for services for intermediate 
demand increased 3.1 percent. 

Product detail: One-third of the April advance in prices for services for intermediate demand is 
attributable to a 10.0-percent jump in margins for metals, minerals, and ores wholesaling. The 
indexes for services related to securities brokerage and dealing (partial); accounting services 
(partial); business loans (partial); broadcast and network television advertising time sales; and 
courier, messenger, and U.S. postal services also moved higher. Conversely, prices for legal services 
fell 1.2 percent. The indexes for portfolio management and for paper and plastics products 
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
Total Trade Transportation
and
warehousing
Other Total, change
from 12 months
ago (unadj.)

2017

Apr.

0.5 0.6 0.4 0.4 2.5

May

0.2 0.3 0.2 0.2 2.7

June

0.3 0.0 0.1 0.5 2.8

July

0.1 0.1 0.0 0.1 2.2

Aug.

0.2 0.3 0.2 0.2 2.8

Sept.

0.2 -0.3 0.7 0.1 2.8

Oct.

0.6 1.0 0.6 0.6 3.3

Nov.

0.2 -0.3 0.6 0.2 3.2

Dec.(1)

0.2 0.4 -0.1 0.2 2.9

2018

Jan.(1)

0.0 -0.2 0.1 0.0 2.9

Feb.

0.5 0.1 0.5 0.5 2.9

Mar.

0.3 1.7 0.5 0.1 3.2

Apr.

0.3 0.9 0.5 0.2 3.1

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2017 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 increased 0.3 percent in 
April, the ninth consecutive advance. In April, the index for total goods inputs to stage 4 intermediate 
demand rose 0.4 percent, and prices for total services inputs moved up 0.2 percent. (See table D.) 
Increases in the indexes for structural, architectural, and pre-engineered metal products; metals, 
minerals, and ores wholesaling; accounting services (partial); services related to securities brokerage 
and dealing (partial); diesel fuel; and asphalt felts and coatings outweighed declines in prices for 
legal services, portfolio management, and beef and veal. (See table 6.) For the 12 months ended in 
April, the index for stage 4 intermediate demand climbed 3.4 percent. 

Stage 3 intermediate demand: Prices for stage 3 intermediate demand advanced 0.2 percent in 
April after decreasing 0.5 percent in March. In April, the index for total services inputs to stage 3 
intermediate demand rose 0.5 percent. In contrast, prices for total goods inputs fell 0.2 percent. 
Increases in the indexes for metals, minerals, and ores wholesaling; raw milk; slaughter chickens; 
steel mill products; services related to securities brokerage and dealing (partial); and accounting 
services (partial) outweighed declines in the indexes for slaughter cattle, slaughter hogs, and paper 
and plastics products wholesaling. For the 12 months ended in April, prices for stage 3 intermediate 
demand moved up 3.9 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 1.0 percent in 
April following a 1.7-percent drop in March. In April, prices for total goods inputs to stage 2 
intermediate demand jumped 1.8 percent, and the index for total services inputs advanced 0.3 
percent. Higher prices for crude petroleum; steel mill products; accounting services (partial); services 
related to securities brokerage and dealing (partial); cable network advertising time sales; and 
staffing services outweighed declines in the indexes for legal services, portfolio management, and 
basic organic chemicals. For the 12 months ended in April, prices for stage 2 intermediate demand 
rose 3.9 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved up 0.5 percent in 
April after falling 0.2 percent in March. In April, the index for total goods inputs to stage 1 
intermediate demand climbed 0.4 percent, and prices for total services inputs advanced 0.5 percent. 
Increases in the indexes for carbon steel scrap; metals, minerals, and ores wholesaling; diesel fuel; 
crude petroleum; steel mill products; and business loans (partial) outweighed decreasing prices for 
basic organic chemicals, wastepaper, and traveler accommodation services. For the 12 months ended 
in April, the index for stage 1 intermediate demand rose 5.4 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
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs
Total Goods
inputs
Services
inputs

2017

Apr.

0.5 0.4 0.7 -0.1 -0.4 0.4 1.4 2.6 0.4 0.3 0.0 0.6

May

0.1 0.0 0.1 0.1 -0.1 0.2 -0.4 -1.1 0.2 0.0 -0.2 0.2

June

0.3 0.3 0.3 0.4 0.4 0.4 0.0 -0.6 0.4 0.2 0.0 0.4

July

0.0 0.0 0.0 -0.1 -0.4 0.2 0.1 0.2 0.0 0.2 0.3 0.1

Aug.

0.3 0.3 0.3 0.4 0.5 0.2 0.2 0.5 0.0 0.7 1.1 0.2

Sept.

0.2 0.3 0.2 0.4 0.7 0.2 0.6 1.3 0.2 0.6 1.0 0.2

Oct.

0.5 0.4 0.7 0.8 0.8 0.7 0.7 0.8 0.5 0.5 0.3 0.9

Nov.

0.4 0.6 0.2 1.0 1.8 0.1 1.0 1.7 0.3 0.7 1.4 -0.1

Dec.(1)

0.1 0.1 0.1 0.3 0.3 0.3 0.6 1.3 0.1 0.5 0.9 0.0

2018

Jan.(1)

0.3 0.7 -0.1 0.4 0.9 -0.1 0.6 0.9 0.3 1.0 1.8 -0.1

Feb.

0.3 0.2 0.4 0.7 1.0 0.3 1.3 2.4 0.5 0.5 0.5 0.5

Mar.

0.5 0.5 0.7 -0.5 -1.4 0.4 -1.7 -4.0 0.2 -0.2 -0.6 0.3

Apr.

0.3 0.4 0.2 0.2 -0.2 0.5 1.0 1.8 0.3 0.5 0.4 0.5

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2017 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for May 2018 is scheduled to be released on Wednesday, June 13, 2018 
at 8:30 a.m. (EDT).

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Last Modified Date: May 09, 2018