Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 17-1247 
8:30 a.m. (EDT), Wednesday, September 13, 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 - AUGUST 2017


The Producer Price Index for final demand advanced 0.2 percent in August, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices edged down 0.1 percent 
in July and moved up 0.1 percent in June. (See table A.) On an unadjusted basis, the final 
demand index increased 2.4 percent for the 12 months ended in August.

Three-quarters of the August increase in final demand prices is attributable to the index for final 
demand goods, which climbed 0.5 percent. Prices for final demand services inched up 0.1 
percent.

The index for final demand less foods, energy, and trade services increased 0.2 percent in August 
following no change in July. For the 12 months ended in August, prices for final demand less 
foods, energy, and trade services rose 1.9 percent.

Final Demand

Final demand goods: Prices for final demand goods advanced 0.5 percent in August, the largest rise 
since moving up 0.5 percent in April. Most of the August increase can be traced to the index for final 
demand energy, which climbed 3.3 percent. Prices for final demand goods less foods and energy 
moved up 0.2 percent. In contrast, the index for final demand foods fell 1.3 percent.

Product detail: Three-quarters of the August increase in the final demand goods index can be traced 
to prices for gasoline, which jumped 9.5 percent. The indexes for jet fuel, industrial chemicals, 
potatoes, home heating oil, and light motor trucks also moved higher. Conversely, prices for meats 
fell 3.4 percent. The indexes for fresh vegetables (except potatoes) and for plastic resins and 
materials also declined. (See table 4.)

Final demand services: The index for final demand services edged up 0.1 percent in August after 
falling 0.2 percent in July. Over 70 percent of the increase can be traced to a 0.1-percent advance in 
the index for final demand services less trade, transportation, and warehousing. Additionally, prices 
for final demand transportation and warehousing services climbed 0.3 percent. Margins for final 
demand trade services were unchanged. (Trade indexes measure changes in margins received by 
wholesalers and retailers.)

Product detail: Over half of the August increase in the index for final demand services can be 
attributed to prices for consumer loans (partial), which advanced 1.7 percent. The indexes for 
outpatient care (partial), machinery and equipment wholesaling, truck transportation of freight, and 
food retailing also moved higher. In contrast, margins for fuels and lubricants retailing fell 6.8 
percent. The indexes for chemicals and allied products wholesaling, guestroom rental, and airline 
passenger services also declined.

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

Aug.

-0.2 0.1 -0.3 -1.1 -0.9 0.2 -0.2 -0.7 -0.3 0.1 0.0 1.2

Sept.

0.3 0.1 0.5 0.5 1.5 0.1 0.3 0.7 -0.7 0.2 0.6 1.3

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.(1)

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(1)

0.1 0.0 -0.6 -0.8 -2.8 0.0 0.4 1.1 0.0 0.1 2.4 2.1

June

0.1 0.2 0.1 0.6 -0.5 0.1 0.2 -0.2 0.1 0.3 2.0 2.0

July

-0.1 0.0 -0.1 0.0 -0.3 -0.1 -0.2 -0.5 -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

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2017 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 advanced 0.4 percent, the index 
for unprocessed goods fell 0.7 percent, and prices for services moved up 0.2 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand climbed 0.4 percent in August, the largest rise since a 0.5-percent increase in April. Over 60 
percent of the August advance can be traced to prices for processed materials less foods and energy, 
which moved up 0.4 percent. Also contributing to the increase, the index for processed energy goods 
jumped 1.4 percent. Conversely, prices for processed foods and feeds decreased 1.0 percent. For the 
12 months ended in August, the index for processed goods for intermediate demand rose 4.1 percent.

Product detail: A major factor in the August advance in prices for processed goods for intermediate 
demand was the index for industrial chemicals, which rose 2.9 percent. Prices for gasoline, jet fuel, 
residual fuel, nonferrous mill shapes, and liquefied petroleum gas also moved higher. In contrast, the 
index for meats fell 3.4 percent. Prices for utility natural gas and for cold rolled steel sheet and strip 
also declined. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand fell 0.7 percent in August following a 0.4-percent decrease in July. The August decline can 
be attributed to a 5.2-percent drop in prices for unprocessed foodstuffs and feedstuffs. Conversely, 
the index for unprocessed energy goods climbed 4.0 percent, and prices for unprocessed nonfood 
materials less energy increased 0.9 percent. For the 12 months ended in August, prices for 
unprocessed goods for intermediate demand climbed 6.8 percent.

Product detail: Leading the August decrease in the index for unprocessed goods for intermediate 
demand, prices for slaughter steers and heifers dropped 10.0 percent. The indexes for slaughter 
poultry, wheat, corn, slaughter barrows and gilts, and natural gas also moved lower. In contrast, 
crude petroleum prices surged 11.0 percent. The indexes for iron and steel scrap and for potatoes also 
rose.

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

Aug.

-0.1 -1.1 -1.3 0.3 -3.0 -2.1 -2.1 -4.0 0.3 -6.5

Sept.

0.3 -0.3 1.7 0.1 -1.3 -0.6 -2.1 2.7 -2.0 -4.9

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.(1)

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

May(1)

0.1 0.3 -0.1 0.2 4.8 -2.0 0.9 -6.0 -0.6 7.5

June

-0.2 1.2 -0.6 -0.2 3.8 1.5 0.3 3.6 0.5 6.3

July

-0.1 -0.5 0.8 -0.3 3.5 -0.4 2.4 -5.1 1.2 5.2

Aug.

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

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 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 0.2 
percent in August following a 0.3-percent drop in July. Most of the advance can be traced to prices 
for services less trade, transportation, and warehousing for intermediate demand, which moved up 
0.3 percent. The index for transportation and warehousing services for intermediate demand also rose 
0.3 percent. Conversely, margins for trade services for intermediate demand dropped 0.5 percent. For 
the 12 months ended in August, the index for services for intermediate demand rose 2.6 percent.

Product detail: The August advance in the index for services for intermediate demand can be 
attributed mainly to prices for business loans (partial), which jumped 5.3 percent. The indexes for 
services related to securities brokerage and dealing; portfolio management; paper and plastics 
products wholesaling; building materials, paint, and hardware wholesaling; and truck transportation 
of freight also increased. In contrast, margins for chemicals and allied products wholesaling fell 4.3 
percent. The indexes for securities brokerage, dealing, and investment advice and for machinery and 
equipment parts and supplies wholesaling also moved down.

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

Aug.

-0.2 -1.6 0.0 0.2 1.3

Sept.

-0.1 -0.3 -0.7 0.1 1.8

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.(1)

0.5 0.6 0.3 0.5 2.5

May(1)

0.1 0.3 0.2 0.0 2.8

June

0.6 0.3 0.0 0.8 2.9

July

-0.3 -0.3 -0.4 -0.2 2.2

Aug.

0.2 -0.5 0.3 0.3 2.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 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 inched up 0.1 percent in 
August following no change a month earlier. In August, prices for both total services and total goods 
inputs to stage 4 intermediate demand moved up 0.1 percent. Advances in the indexes for business 
loans (partial), portfolio management, gasoline, paper and plastics products wholesaling, and services 
related to securities brokerage and dealing outweighed declining indexes for chemicals and allied 
products wholesaling; machinery and equipment parts and supplies wholesaling; securities 
brokerage, dealing, and investment advice; and meats. For the 12 months ended in August, prices for 
stage 4 intermediate demand increased 2.8 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand rose 0.2 percent in August 
following a 0.1-percent decrease in the previous month. In August, the index for total goods inputs to 
stage 3 intermediate demand increased 0.2 percent, and prices for total services inputs moved up 0.1 
percent. Advances in the indexes for gasoline, jet fuel, business loans (partial), industrial chemicals, 
services related to securities brokerage and dealing, and heating oil outweighed decreases in the 
indexes for slaughter steers and heifers, slaughter poultry, and chemicals and allied products 
wholesaling. For the 12 months ended in August, prices for stage 3 intermediate demand advanced 
3.8 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 0.5 percent in 
August following a 0.7-percent decline in the prior month. In August, prices for total goods inputs to 
stage 2 intermediate demand rose 1.3 percent, while the index for total services inputs was 
unchanged. Higher prices for crude petroleum, services related to securities brokerage and dealing, 
portfolio management, liquefied petroleum gas, industrial chemicals, and paint materials outweighed 
declines in the indexes for securities brokerage, dealing, and investment advice; natural gas; and cold 
rolled steel sheet and strip. For the 12 months ended in August, prices for stage 2 intermediate 
demand rose 3.7 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand advanced 0.7 percent in 
August, the largest increase since a similar 0.7-percent rise in February. In August, prices for total 
goods inputs to stage 1 intermediate demand jumped 1.2 percent, and the index for total services 
inputs rose 0.3 percent. Increases in prices for industrial chemicals, business loans (partial), iron and 
steel scrap, gasoline, crude petroleum, and residual fuels outweighed declines in the indexes for 
chemicals and allied products wholesaling; securities brokerage, dealing, and investment advice; and 
wheat. For the 12 months ended in August, prices for stage 1 intermediate demand rose 5.7 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

2016

Aug.

-0.2 -0.1 -0.3 -0.6 -0.7 -0.4 -0.5 -1.1 -0.1 -0.5 -0.3 -0.7

Sept.

0.1 0.2 -0.1 -0.1 -0.1 -0.1 0.3 0.7 -0.1 0.1 0.2 -0.1

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.(1)

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(1)

0.2 0.2 0.2 -0.2 -0.5 0.1 -0.5 -1.6 0.3 0.1 0.2 -0.1

June

0.3 0.0 0.5 0.3 0.0 0.5 0.5 0.7 0.4 0.2 -0.4 0.9

July

0.0 0.3 -0.3 -0.1 0.0 -0.1 -0.7 -1.4 -0.3 -0.1 0.2 -0.5

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

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

________________
The Producer Price Index for September 2017 is scheduled to be released on Thursday, 
October 12, 2017 at 8:30 a.m. (EDT).

                                           *****

                                 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: September 13, 2017