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Economic News Release
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Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 20-1692
8:30 a.m. (ET), Thursday, September 10, 2020

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

                         PRODUCER PRICE INDEXES - AUGUST 2020


The Producer Price Index for final demand increased 0.3 percent in August, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.6 percent in July 
and fell 0.2 percent in June. (See table A). On an unadjusted basis, the final demand index 
declined 0.2 percent for the 12 months ended in August.

In August, the rise in prices for final demand was led by a 0.5-percent increase in the index for 
final demand services. Prices for final demand goods also advanced, inching up 0.1 percent.

The index for final demand less foods, energy, and trade services moved up 0.3 percent in 
August, the same as in both July and June. For the 12 months ended in August, prices for final 
demand less foods, energy, and trade services increased 0.3 percent.

Final Demand

Final demand services: The index for final demand services rose 0.5 percent in August, the same as 
in July. In August, two-thirds of the advance can be traced to a 1.2-percent increase in margins for 
final demand trade services. (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 also moved up, 0.3 percent and 0.2 percent, 
respectively. 

Product detail: Nearly 20 percent of the August advance in prices for final demand services is 
attributable to a 1.1-percent increase in margins for machinery, equipment, parts, and supplies 
wholesaling. The indexes for automobiles and automobile parts retailing; truck transportation of 
freight; food retailing; portfolio management; and securities brokerage, dealing, investment advice, 
and related services also rose. In contrast, margins for chemicals and allied products wholesaling 
declined 4.5 percent. The indexes for airline passenger services and investment banking also fell. 
(See table 4.)

Final demand goods: Prices for final demand goods edged up 0.1 percent in August, the fourth 
consecutive increase. The August rise can be attributed to a 0.3-percent advance in the index for final 
demand goods less foods and energy. Conversely, prices for final demand foods fell 0.4 percent, and 
the index for final demand energy declined 0.1 percent.

Product detail: Among prices for final demand goods in August, the index for plastic resins and 
materials rose 4.0 percent. Prices for diesel fuel, gas fuels, packaged fluid milk and related products, 
and nonferrous scrap also moved higher. In contrast, the index for chicken eggs dropped 12.2 
percent. Prices for home heating oil, gasoline, and ethanol also decreased.

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

2019

Aug.

0.1 0.1 -0.3 -0.6 -1.4 0.0 0.3 0.9 -0.2 0.2 1.9 1.9

Sept.

-0.3 0.0 -0.2 0.4 -1.4 -0.1 -0.3 -0.9 -0.2 0.0 1.5 1.7

Oct.

0.3 0.0 0.5 1.4 1.8 0.1 0.2 0.5 0.4 0.0 1.0 1.5

Nov.

-0.1 0.1 0.3 1.3 -0.1 0.1 -0.3 -1.2 -0.2 0.1 1.0 1.4

Dec.

0.3 0.2 0.2 -0.2 1.1 0.0 0.3 0.6 1.6 0.1 1.4 1.5

2020

Jan.

0.3 0.3 0.3 0.2 0.4 0.3 0.3 0.3 -1.3 0.5 2.0 1.5

Feb.

-0.5 -0.1 -0.9 -1.8 -3.9 0.1 -0.3 -0.7 -0.2 -0.3 1.1 1.4

Mar.

-0.4 -0.2 -1.5 -0.1 -9.1 0.0 0.1 0.9 -2.9 0.1 0.3 1.0

Apr.(1)

-1.3 -0.8 -3.0 -0.5 -18.2 -0.3 -0.4 0.9 -3.4 -0.8 -1.5 -0.1

May(1)

0.8 0.0 1.8 6.1 6.3 -0.1 0.3 0.9 0.8 -0.1 -0.8 -0.4

June

-0.2 0.3 0.2 -5.2 7.7 0.1 -0.3 -1.8 0.9 0.3 -0.8 -0.1

July

0.6 0.3 0.8 -0.5 5.3 0.3 0.5 0.8 -0.8 0.4 -0.4 0.1

Aug.

0.3 0.3 0.1 -0.4 -0.1 0.3 0.5 1.2 0.2 0.3 -0.2 0.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2020 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in August, prices for processed goods rose 0.6 percent, the index for 
unprocessed goods increased 7.0 percent, and prices for services moved up 0.7 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand rose 0.6 percent in August, the fourth consecutive increase. Sixty percent of the August 
advance can be traced to prices for processed materials less foods and energy, which moved up 0.5 
percent. The index for processed energy goods rose 1.7 percent. Conversely, prices for processed 
foods and feeds decreased 0.5 percent. For the 12 months ended in August, the index for processed 
goods for intermediate demand fell 2.6 percent.

Product detail: A major factor in the August increase in prices for processed goods for intermediate 
demand was the index for lumber, which rose 10.5 percent. Prices for diesel fuel, primary basic 
organic chemicals, plastic resins and materials, utility natural gas, and softwood veneer and plywood 
also advanced. In contrast, the index for processed cheese and related products fell 11.0 percent. 
Prices for heating oil and for cold rolled steel sheet and strip also decreased. (See table 5.)

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate 
demand rose 7.0 percent in August following a 0.7-percent decrease the previous month. Over half of 
the broad-based increase can be attributed to an 11.7-percent advance in the index for unprocessed 
energy materials. Prices for unprocessed foodstuffs and feedstuffs moved up 7.0 percent, and the 
index for unprocessed nonfood materials less energy rose 1.7 percent. For the 12 months ended in 
August, prices for unprocessed goods for intermediate demand fell 9.0 percent.

Product detail: Over a quarter of the August increase in the index for unprocessed goods for 
intermediate demand can be traced to prices for natural gas, which jumped 22.8 percent. The indexes 
for crude petroleum, raw milk, slaughter steers and heifers, slaughter hogs, and nonferrous scrap also 
rose. Conversely, prices for corn fell 3.6 percent. The indexes for corrugated recyclable paper and 
coal also decreased.

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.)

2019

Aug.

-0.5 0.3 -1.4 -0.3 -3.0 -1.6 -0.5 -3.1 -0.6 -7.7

Sept.

-0.1 0.8 -0.5 -0.2 -3.5 0.0 -0.9 1.5 -0.9 -8.9

Oct.

0.3 0.4 0.1 0.3 -3.8 0.3 5.4 -4.1 -0.8 -11.2

Nov.

0.2 1.4 1.4 -0.2 -2.9 3.1 0.6 7.8 -0.1 -5.1

Dec.

-0.1 0.0 0.5 -0.2 -1.7 1.2 0.5 0.8 3.1 -7.3

2020

Jan.

-0.2 -0.2 -1.0 0.1 -1.0 -1.1 0.2 -5.9 5.0 -3.7

Feb.

-0.9 -0.8 -4.0 -0.1 -2.0 -6.7 -4.9 -12.2 -1.4 -7.8

Mar.

-1.5 -0.7 -7.4 -0.2 -4.0 -8.5 -4.3 -20.0 1.2 -15.6

Apr.(1)

-3.6 -0.1 -14.7 -1.5 -7.6 -14.1 -12.6 -25.2 -3.7 -28.6

May(1)

0.4 6.5 1.3 -0.6 -6.8 9.6 7.3 24.2 0.3 -19.4

June

0.9 -5.5 7.2 0.5 -5.0 3.1 -5.6 16.8 1.1 -14.6

July

1.5 -0.7 7.4 0.5 -3.6 -0.7 4.3 -7.4 0.3 -16.3

Aug.

0.6 -0.5 1.7 0.5 -2.6 7.0 7.0 11.7 1.7 -9.0

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2020 have been revised to reflect the availability of late reports and corrections by respondents.

Services for intermediate demand: Prices for services for intermediate demand moved up 0.7 
percent in August, the third consecutive increase. About three-quarters of the August advance can be 
attributed to a 0.9-percent rise in the index for services less trade, transportation, and warehousing for 
intermediate demand. Margins for trade services for intermediate demand increased 1.2 percent. In 
contrast, prices for transportation and warehousing services for intermediate demand decreased 0.1 
percent. For the 12 months ended in August, the index for services for intermediate demand fell 0.6 
percent. 

Product detail: One-fifth of the August increase in the index for services for intermediate demand 
can be attributed to prices for securities brokerage, dealing, investment advice, and related services, 
which rose 5.0 percent. The indexes for portfolio management; hardware, building materials, and 
supplies retailing; metals, minerals, and ores wholesaling; business loans (partial); and truck 
transportation of freight also advanced. Conversely, prices for arrangement of freight and cargo 
transportation dropped 9.6 percent. The indexes for chemicals and allied products wholesaling and 
for investment banking 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.)

2019

Aug.

0.4 1.4 0.2 0.2 2.7

Sept.

0.2 1.0 0.2 0.0 2.5

Oct.

-0.6 -0.8 0.1 -0.6 1.4

Nov.

-0.1 -0.3 -0.1 -0.1 1.3

Dec.

0.5 1.0 0.7 0.3 1.7

2020

Jan.

0.2 0.2 -0.5 0.2 1.7

Feb.

-0.2 -0.3 -0.2 -0.3 1.3

Mar.

0.1 0.4 -1.1 0.3 1.1

Apr.(1)

-1.7 -0.1 -1.4 -2.2 -1.2

May(1)

-0.4 0.7 0.3 -0.9 -1.6

June

0.2 -0.5 -0.2 0.4 -1.5

July

0.7 1.1 -0.4 0.8 -1.0

Aug.

0.7 1.2 -0.1 0.9 -0.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2020 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 advanced 0.5 percent in 
August, the fourth consecutive increase. In August, the index for total services inputs to stage 4 
intermediate demand climbed 0.8 percent, and prices for total goods inputs moved up 0.3 percent. 
(See table D.) Increases in the indexes for portfolio management; hardware, building materials, and 
supplies retailing; diesel fuel; securities brokerage, dealing, investment advice, and related services; 
lumber; and metals, minerals, and ores wholesaling outweighed decreases in the indexes for 
chemicals and allied products wholesaling, investment banking, and processed cheese and related 
products. (See table 6.) For the 12 months ended in August, prices for stage 4 intermediate demand 
were unchanged.

Stage 3 intermediate demand: The index for stage 3 intermediate demand rose 1.4 percent in 
August, the fourth consecutive increase. In August, prices for total goods inputs to stage 3 
intermediate demand climbed 2.5 percent, and the index for total services inputs moved up 0.7 
percent. Higher prices for raw milk; slaughter steers and heifers; slaughter hogs; primary basic 
organic chemicals; securities brokerage, dealing, investment advice, and related services; and diesel 
fuel outweighed decreases in the indexes for arrangement of freight and cargo transportation; 
chemicals and allied products wholesaling; and heating oil. For the 12 months ended in August, 
prices for stage 3 intermediate demand moved down 3.8 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand moved up 1.8 percent in 
August following no change in July. In August, prices for total goods inputs to stage 2 intermediate 
demand advanced 3.9 percent, and the index for total services inputs increased 0.7 percent. Higher 
prices for gas fuels; crude petroleum; plastic resins and materials; securities brokerage, dealing, 
investment advice, and related services; portfolio management; and television advertising time sales 
outweighed declines in the indexes for investment banking, arrangement of freight and cargo 
transportation, and cold rolled steel sheet and strip. For the 12 months ended in August, prices for 
stage 2 intermediate demand declined 3.3 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand climbed 1.0 percent in 
August, the third consecutive increase. In August, the index for total goods inputs to stage 1 
intermediate demand rose 1.2 percent, and prices for total services inputs advanced 0.8 percent. 
Increases in the indexes for diesel fuel; metals, minerals, and ores wholesaling; gas fuels; securities 
brokerage, dealing, investment advice, and related services; crude petroleum; and business loans 
(partial) outweighed decreases in the indexes for chemicals and allied products wholesaling, airline 
passenger services, and corn. For the 12 months ended in August, prices for stage 1 intermediate 
demand decreased 3.2 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

2019

Aug.

0.1 -0.4 0.6 0.1 -0.4 0.5 -0.5 -1.4 0.3 -0.4 -1.0 0.7

Sept.

0.1 0.1 0.2 -0.3 -0.9 0.3 0.3 0.5 0.1 -0.2 -0.5 0.3

Oct.

-0.2 0.2 -0.6 0.5 1.6 -0.5 -0.7 -0.9 -0.5 -0.2 0.3 -0.8

Nov.

0.1 0.3 -0.1 0.0 0.3 -0.2 1.1 2.4 0.2 0.2 0.6 -0.5

Dec.

0.3 0.2 0.6 0.3 0.3 0.5 0.3 0.0 0.5 0.7 0.7 0.7

2020

Jan.

0.2 -0.1 0.2 -0.1 -0.2 0.0 -0.6 -1.6 0.2 0.1 0.4 -0.2

Feb.

-0.5 -0.5 -0.4 -1.4 -2.6 -0.2 -2.0 -4.7 -0.2 -1.4 -2.3 -0.4

Mar.

-0.3 -0.6 0.1 -1.8 -3.9 0.2 -2.8 -7.2 0.2 -1.4 -2.7 0.1

Apr.(1)

-1.8 -1.8 -1.7 -5.4 -10.2 -1.1 -4.5 -9.1 -1.8 -4.5 -6.7 -1.8

May(1)

0.2 0.6 -0.2 0.9 2.6 -0.4 1.9 5.0 0.1 -0.6 -0.6 -0.8

June

0.3 0.3 0.5 0.4 0.8 0.0 1.9 4.9 0.3 1.7 3.2 0.3

July

1.0 0.9 1.0 1.7 3.5 0.3 0.0 -1.2 0.8 1.4 2.6 0.1

Aug.

0.5 0.3 0.8 1.4 2.5 0.7 1.8 3.9 0.7 1.0 1.2 0.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2020 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for September 2020 is scheduled to be released on Wednesday, 
October 14, 2020 at 8:30 a.m. (ET).

                                                  *****
  _______________________________________________________________________________________________________
 |       Coronavirus (COVID-19) Pandemic Impact on August 2020 Producer Price Index Survey Data          |
 |                                                                                                       |
 | As was the case for March through July, the Producer Price Index (PPI) response rates for August were |
 | consistent with pre-COVID-19 response rates, and no changes in estimation procedures were necessary.  |
 | Additional information is available at www.bls.gov/covid19/effects-of-covid-19-pandemic-on-producer-  |
 | price-index.htm.                                                                                      |
 |_______________________________________________________________________________________________________|

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Last Modified Date: September 10, 2020