Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 17-1502 
8:30 a.m. (EST), Tuesday, November 14, 2017

Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov                                    


                                 PRODUCER PRICE INDEXES - OCTOBER 2017


The Producer Price Index for final demand increased 0.4 percent in October, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.4 percent in 
September and 0.2 percent in August. (See table A.) On an unadjusted basis, the final demand 
index increased 2.8 percent for the 12 months ended in October, the largest rise since an advance 
of 2.8 percent for the 12 months ended February 2012.

Within final demand in October, prices for final demand services rose 0.5 percent, and the index 
for final demand goods moved up 0.3 percent. 

Prices for final demand less foods, energy, and trade services rose 0.2 percent in October. For the 
12 months ended in October, the index for final demand less foods, energy, and trade services 
advanced 2.3 percent.

Final Demand

Final demand services: The index for final demand services rose 0.5 percent in October, the largest 
increase since moving up 0.5 percent in April. Three-quarters of the October advance can be traced 
to a 1.1-percent rise in margins for final demand trade services. (Trade indexes measure changes in 
margins received by wholesalers and retailers.) The index for final demand transportation and 
warehousing services increased 0.8 percent. Prices for final demand services less trade, 
transportation, and warehousing edged up 0.1 percent.

Product detail: Nearly half of the increase in prices for final demand services can be attributed to 
margins for fuels and lubricants retailing, which surged 24.9 percent. The indexes for machinery and 
equipment wholesaling; transportation of passengers (partial); apparel, jewelry, footwear, and 
accessories retailing; chemicals and allied products wholesaling; and portfolio management also 
advanced. In contrast, margins for food retailing moved down 2.1 percent. The indexes for food and 
alcohol wholesaling and for loan services (partial) also decreased. (See table 4.)

Final demand goods: Prices for final demand goods moved up 0.3 percent in October, the third 
straight increase. Over two-thirds of the October rise can be traced to the index for final demand 
goods less foods and energy, which advanced 0.3 percent. Prices for final demand foods moved up 
0.5 percent. The index for final demand energy was unchanged.

Product detail: Almost half of the rise in the final demand goods index was the result of higher 
prices for pharmaceutical preparations, which increased 2.1 percent. The indexes for industrial 
chemicals, fresh and dry vegetables, diesel fuel, beef and veal, and tobacco products also advanced. 
Conversely, prices for gasoline fell 4.6 percent. The indexes for light motor trucks and pork also 
moved lower. (In accordance with usual practice, most new-model-year passenger cars and light 
motor trucks were introduced into the PPI in October. See Report on Quality Changes for 2018 
Model Vehicles, at www.bls.gov/web/ppi/ppimotveh.htm.)

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

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.

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.

0.2 0.3 0.6 0.8 1.9 0.3 0.0 -0.4 1.1 0.1 1.7 1.8

2017

Jan.

0.6 0.1 1.0 0.6 4.0 0.4 0.4 1.2 0.0 0.1 1.7 1.7

Feb.

0.0 0.3 0.4 0.7 0.9 0.2 -0.3 -1.2 0.4 0.2 2.0 1.8

Mar.

0.0 0.0 -0.1 0.8 -2.9 0.4 0.2 0.4 -1.0 0.1 2.2 1.8

Apr.

0.5 0.6 0.5 1.2 0.5 0.3 0.5 0.4 0.9 0.5 2.5 2.0

May

0.0 0.0 -0.5 -0.7 -2.6 0.0 0.3 0.7 -0.3 0.2 2.3 2.1

June(1)

0.0 0.2 -0.1 0.5 -1.0 0.1 0.1 -0.3 0.3 0.2 1.9 2.1

July(1)

0.1 0.0 0.0 0.0 0.0 -0.1 0.0 0.0 -0.8 0.2 1.9 1.9

Aug.

0.2 0.2 0.5 -1.3 3.3 0.2 0.1 0.0 0.3 0.1 2.4 1.9

Sept.

0.4 0.2 0.7 0.0 3.4 0.3 0.4 0.8 1.0 0.1 2.6 2.1

Oct.

0.4 0.2 0.3 0.5 0.0 0.3 0.5 1.1 0.8 0.1 2.8 2.3

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

Intermediate Demand by Commodity Type

Within intermediate demand in October, prices for processed goods advanced 1.0 percent, the index 
for unprocessed goods was unchanged, and prices for services moved up 0.3 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand climbed 1.0 percent in October, the largest rise since a 1.2-percent increase in January. Sixty 
percent of the October advance can be traced to prices for processed materials less foods and energy, 
which moved up 0.8 percent. The indexes for processed energy goods and for processed foods and 
feeds rose 1.8 percent and 0.8 percent, respectively. For the 12 months ended in October, prices for 
processed goods for intermediate demand jumped 5.0 percent.

Product detail: Over one-third of the October advance in prices for processed goods for intermediate 
demand can be attributed to the index for industrial chemicals, which rose 5.2 percent. Prices for 
diesel fuel, commercial electric power, industrial electric power, plastic resins and materials, and 
prepared animal feeds also moved higher. In contrast, the index for gasoline fell 4.6 percent. Prices 
for pork and for paper boxes and containers also declined. (See table 5.)
 
Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand was unchanged in October following a 0.4-percent decline in September. In October, prices 
for unprocessed energy materials rose 2.1 percent, and the index for unprocessed foodstuffs and 
feedstuffs moved up 0.4 percent. Conversely, prices for unprocessed nonfood materials less energy 
fell 3.7 percent. For the 12 months ended in October, the index for unprocessed goods for 
intermediate demand climbed 7.7 percent.

Product detail: In October, prices for crude petroleum increased 6.6 percent. The indexes for 
slaughter cattle; ungraded chicken eggs; fresh vegetables (except potatoes); and construction sand, 
gravel, and crushed stone also advanced. In contrast, prices for carbon steel scrap fell 9.5 percent. 
The indexes for wastepaper, slaughter hogs, natural gas, and raw milk also moved lower. 

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

Oct.

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

Nov.

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

Dec.

0.6 1.3 1.3 0.4 1.8 7.3 4.8 13.4 3.4 13.0

2017

Jan.

1.2 0.5 5.4 0.3 4.0 3.8 2.1 6.7 3.3 17.4

Feb.

0.7 0.4 0.8 0.7 5.4 -0.1 2.6 -4.2 1.0 19.2

Mar.

-0.3 0.3 -3.3 0.4 5.3 -3.4 -0.6 -11.0 2.0 13.4

Apr.

0.5 -0.5 1.4 0.4 5.4 1.6 -1.6 7.8 -0.6 12.8

May

-0.1 0.5 -0.4 -0.1 4.6 -1.0 1.7 -4.3 -0.7 8.5

June(1)

0.1 0.8 -0.1 0.1 3.8 0.1 1.0 -1.5 0.6 5.8

July(1)

-0.1 -0.3 0.7 -0.3 3.5 0.1 0.9 -1.9 1.3 5.2

Aug.

0.4 -1.0 1.4 0.4 4.1 -0.7 -5.2 4.0 0.9 6.8

Sept.

0.5 -0.6 2.4 0.2 4.3 -0.4 -1.7 -0.8 2.0 7.0

Oct.

1.0 0.8 1.8 0.8 5.0 0.0 0.4 2.1 -3.7 7.7

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for June 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 advanced 0.3 
percent in October, the third consecutive increase. Nearly half of the broad-based rise in October can 
be traced to prices for services less trade, transportation, and warehousing for intermediate demand, 
which moved up 0.2 percent. The indexes for trade services for intermediate demand and for 
transportation and warehousing services for intermediate demand both increased 0.5 percent. For the 
12 months ended in October, prices for services for intermediate demand moved up 2.9 percent, the 
largest rise since a 2.9-percent advance in December 2012.

Product detail: A major factor in the October increase in the index for services for intermediate 
demand was prices for securities brokerage, dealing, and investment advice, which moved up 2.0 
percent. The indexes for metals, minerals, and ores wholesaling; portfolio management; fuels and 
lubricants retailing; chemicals and allied products wholesaling; and transportation of passengers 
(partial) also moved higher. Conversely, prices for loan services (partial) fell 2.0 percent. The 
indexes for television advertising time sales and for food and alcohol wholesaling also declined.

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

Oct.

0.1 -0.2 0.3 0.0 2.4

Nov.

0.4 0.0 0.3 0.6 2.6

Dec.

0.2 1.1 0.7 -0.2 2.6

2017

Jan.

0.4 0.2 0.1 0.5 1.7

Feb.

0.4 1.1 0.6 0.3 2.1

Mar.

0.0 0.4 -0.1 -0.1 2.0

Apr.

0.5 0.6 0.3 0.5 2.5

May

0.0 0.3 0.0 0.0 2.7

June(1)

0.5 0.1 0.2 0.6 2.8

July(1)

-0.1 -0.1 -0.4 0.0 2.2

Aug.

0.2 -0.5 0.3 0.3 2.6

Sept.

0.1 0.4 0.6 -0.1 2.7

Oct.

0.3 0.5 0.5 0.2 2.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for June 2017 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 moved up 0.5 percent in 
October, the fifth consecutive rise. In October, prices for total goods inputs to stage 4 intermediate 
demand climbed 0.6 percent, and the index for total services inputs advanced 0.3 percent. (See table 
D.) Increases in the indexes for diesel fuel; portfolio management; industrial chemicals; commercial 
electric power; metals, minerals, and ores wholesaling; and industrial electric power outweighed 
declines in the indexes for loan services (partial), gasoline, and food and alcohol wholesaling. (See 
table 6.) For the 12 months ended in October, prices for stage 4 intermediate demand climbed 3.4 
percent, the largest increase since a 3.6-percent advance in December 2011. 

Stage 3 intermediate demand: Prices for stage 3 intermediate demand moved up 0.4 percent in 
October, the same as in the prior month. In October, the index for total goods inputs to stage 3 
intermediate demand advanced 0.7 percent, and prices for total services inputs climbed 0.3 percent. 
Increases in the indexes for industrial chemicals; diesel fuel; metals, minerals, and ores wholesaling; 
ungraded chicken eggs; jet fuel; and fuels and lubricants retailing outweighed decreases in the 
indexes for gasoline, slaughter hogs, and food and alcohol wholesaling. For the 12 months ended in 
October, prices for stage 3 intermediate demand advanced 5.2 percent, the largest rise since moving 
up 5.4 percent in December 2011.

Stage 2 intermediate demand: The index for stage 2 intermediate demand advanced 1.0 percent in 
October following a 0.2-percent rise a month earlier. In October, prices for total goods inputs to stage 
2 intermediate demand increased 1.5 percent, and the index for total services inputs moved up 0.5 
percent. Higher prices for crude petroleum; plastic resins and materials; industrial chemicals; 
portfolio management; securities brokerage, dealing, and investment advice; and staffing services 
outweighed declines in the indexes for television advertising time sales, carbon steel scrap, and 
wastepaper. For the 12 months ended in October, prices for stage 2 intermediate demand climbed 3.6 
percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved up 0.6 percent in 
October, the fifth straight advance. In October, the index for total goods inputs to stage 1 
intermediate demand increased 0.7 percent, and prices for total services inputs climbed 0.5 percent. 
Advances in the indexes for industrial chemicals; diesel fuel; metals, minerals, and ores wholesaling; 
fuels and lubricants retailing; commercial electric power; and chemicals and allied products 
wholesaling outweighed decreases in prices for carbon steel scrap, wastepaper, and loan services 
(partial). For the 12 months ended in October, the index for stage 1 intermediate demand climbed 6.7 
percent, the largest increase since a 6.8-percent rise in March 2017.

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

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.

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.

0.4 0.4 0.3 1.2 2.2 0.2 2.0 4.5 0.3 1.4 2.1 0.4

2017

Jan.

0.6 0.8 0.5 1.1 1.8 0.3 1.3 2.5 0.4 1.3 2.1 0.4

Feb.

0.5 0.5 0.5 0.9 1.4 0.5 0.0 -0.3 0.3 0.7 0.9 0.4

Mar.

-0.1 0.1 -0.1 -0.1 -0.4 0.1 -1.5 -3.6 0.1 0.0 0.3 -0.3

Apr.

0.5 0.3 0.7 -0.1 -0.5 0.4 1.3 2.5 0.4 0.3 -0.1 0.9

May

0.0 0.0 0.1 0.0 -0.2 0.1 -0.4 -1.3 0.2 -0.2 -0.2 -0.2

June(1)

0.4 0.2 0.4 0.3 0.3 0.4 -0.1 -0.7 0.4 0.3 -0.2 0.8

July(1)

0.1 0.3 -0.2 -0.3 -0.6 0.0 -0.2 -0.4 -0.1 0.1 0.4 -0.3

Aug.

0.1 0.1 0.1 0.2 0.2 0.1 0.5 1.3 0.0 0.7 1.2 0.3

Sept.

0.1 0.2 0.2 0.4 0.5 0.2 0.2 0.3 0.1 0.5 0.7 -0.1

Oct.

0.5 0.6 0.3 0.4 0.7 0.3 1.0 1.5 0.5 0.6 0.7 0.5

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

________________
The Producer Price Index for November 2017 is scheduled to be released on Tuesday, 
December 12, 2017 at 8:30 a.m. (EST).

  
                                             *****


      Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be 
                              Available on February 13, 2018

Each year with the release of PPI data for January, seasonal adjustment factors and relative 
importance figures are recalculated to reflect price movements from the just-completed calendar 
year. The following seasonal information will be available on February 13, 2018 (2 workdays 
prior to the release of PPI data for January 2018 on February 15, 2018):

*  Direct seasonal factors for PPI commodity indexes for the year 2018,
*  Recalculated seasonal factors for the last 5 years (2013-2017) for PPI commodity indexes, 
*  Recalculated seasonal factors for the last 5 years (2013-2017) for PPI Final Demand-
   Intermediate Demand indexes, 
*  Recalculated seasonal index data for the last 5 years (2013-2017) for Final Demand-
   Intermediate Demand and commodity indexes. This revision to seasonally adjusted indexes 
   for the previous 5 years will be posted to the PPI database on the BLS website. 

In addition, the following relative importance tables, which include values for December 2017, 
will be available on February 13, 2018:  

*  Final demand by individual commodities
*  Final demand by component series
*  Individual commodities of intermediate demand by commodity type
*  Component series of intermediate demand by commodity type
*  Individual commodities of intermediate demand by production flow
*  Component series of intermediate demand by production flow
*  Commodities, all levels
*  Wherever-provided services and construction

This information will be available on the PPI website at www.bls.gov/ppi or by contacting the 
PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202)691-7705.


                                             *****


                                   PPI Weights to be Updated
 
In February 2018, with the release of January 2018 Producer Price Index (PPI) data, the Bureau of 
Labor Statistics will update PPI value weights to more accurately reflect recent production and 
marketing patterns. The updated weights will be based on shipment values from the year 2012. These 
value weights come from the Census of Manufactures, the Census of Mining, the Census of Services, 
and the Census of Agriculture. PPI weights have been based on 2007 Census shipment values since 
January 2012.
 
All PPIs will be affected by this weight update, including all the industry net output indexes, as well 
as indexes for traditional commodity groupings. In addition, weights will be updated from the 2007 
to the 2012 Census for all Final demand-Intermediate demand (FD-ID) indexes, durability of product 
indexes, special commodity-grouping indexes, and input to industry indexes. This weight revision 
will not change any arithmetic reference bases for indexes, the dates when PPIs were set to 100.
 
It is important to note that the basic structures of the PPI commodity and FD-ID classification 
systems will not change as a result of the weight revision. The PPIs classified according to the North 
American Industry Classification System (NAICS), however, will be updated to reflect 2017 NAICS 
definitions, as established by the U.S. Census Bureau. The weight update will also result in 
significant shifts in the relative importance of various industries and products. These shifts will 
impact aggregate indexes in a manner commensurate with the relative gains and losses in value 
weights from 2007 to 2012.
 
In addition, the PPI sample updates normally occurring with the release of October and February data 
will be combined and released in conjunction with the weight update in February 2018. Commodity 
and FD-ID relative importance figures for December 2017 will be available two business days prior 
to the release of January 2018 PPI data. This information will be available on the PPI website at 
www.bls.gov/ppi or by contacting the PPI Section of Index Analysis and Public Information at ppi-
info@bls.gov or (202)691-7705. 

                                             *****


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Last Modified Date: November 14, 2017