Transmission of material in this release is embargoed until USDL 22-0020
8:30 a.m. (ET), Thursday, January 13, 2022
Technical information: (202) 691-7705 * ppi-info@bls.gov * www.bls.gov/ppi
Media contact: (202) 691-5902 * PressOffice@bls.gov
PRODUCER PRICE INDEXES - DECEMBER 2021
The Producer Price Index for final demand increased 0.2 percent in December, seasonally
adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 1.0
percent in November and 0.6 percent in October. (See table A.) On an unadjusted basis, final
demand prices moved up 9.7 percent in 2021, the largest calendar-year increase since data were
first calculated in 2010.
In December, the advance in the final demand index can be traced to a 0.5-percent increase in
prices for final demand services. Conversely, the index for final demand goods decreased 0.4
percent.
Prices for final demand less foods, energy, and trade services rose 0.4 percent in December
following a 0.8-percent increase in November. In 2021, the index for final demand less foods,
energy, and trade services moved up 6.9 percent, following a 1.3-percent advance in 2020.
Final Demand
Final demand services: Prices for final demand services rose 0.5 percent in December following a
0.9-percent increase in November. Over half of the broad-based advance in December is attributable
to margins for final demand trade services, which moved up 0.8 percent. (Trade indexes measure
changes in margins received by wholesalers and retailers.) Prices for final demand services less trade,
transportation, and warehousing and for final demand transportation and warehousing services rose
0.2 percent and 1.7 percent, respectively.
Product detail: Over a quarter of the December increase in the index for final demand services can
be attributed to margins for fuels and lubricants retailing, which rose 13.0 percent. The indexes for
airline passenger services, food retailing, machinery and vehicle wholesaling, machinery and
equipment parts and supplies wholesaling, and traveler accommodation services also moved higher.
In contrast, margins for automobile and automobile parts retailing decreased 2.7 percent. The indexes
for deposit services (partial) and for health, beauty, and optical goods retailing also declined. (See
table 2.)
Final demand goods: The index for final demand goods moved down 0.4 percent in December, the
first decrease since falling 2.8 percent in April 2020. Leading the December decline, prices for final
demand energy dropped 3.3 percent. The index for final demand foods fell 0.6 percent. Conversely,
prices for final demand goods less foods and energy advanced 0.5 percent.
Product detail: A major factor in the December decrease in prices for final demand goods was the
index for gasoline, which moved down 6.1 percent. Prices for meats, gas fuels, fresh and dry
vegetables, diesel fuel, and primary basic organic chemicals also declined. In contrast, the index for
ethanol increased 6.4 percent. Prices for residential electric power and for chicken eggs also moved
higher.
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 |
2020 |
|
Dec. |
0.3 |
0.4 |
0.9 |
-1.4 |
4.9 |
0.5 |
0.0 |
-0.7 |
-0.2 |
0.4 |
0.8 |
1.3 |
2021 |
|
Jan. |
1.2 |
1.0 |
1.6 |
1.6 |
5.1 |
0.8 |
1.0 |
0.8 |
0.7 |
1.2 |
1.6 |
1.9 |
Feb. |
0.7 |
0.4 |
1.6 |
1.4 |
6.2 |
0.5 |
0.3 |
0.2 |
0.8 |
0.2 |
3.0 |
2.3 |
Mar. |
0.8 |
0.6 |
1.5 |
0.6 |
5.0 |
0.8 |
0.3 |
0.2 |
1.4 |
0.4 |
4.1 |
3.1 |
Apr. |
1.0 |
0.8 |
0.7 |
1.8 |
-1.2 |
1.0 |
1.2 |
2.3 |
3.6 |
0.4 |
6.5 |
4.8 |
May |
0.9 |
0.5 |
1.5 |
2.7 |
1.2 |
1.1 |
0.6 |
1.7 |
0.2 |
0.2 |
7.0 |
5.3 |
June |
0.9 |
0.6 |
1.2 |
0.8 |
2.9 |
1.0 |
0.6 |
0.9 |
1.6 |
0.3 |
7.6 |
5.6 |
July |
0.9 |
0.8 |
0.7 |
-1.3 |
2.4 |
0.8 |
1.0 |
1.7 |
2.5 |
0.5 |
8.0 |
6.0 |
Aug. |
0.9 |
0.4 |
0.9 |
2.3 |
0.6 |
0.6 |
0.9 |
2.2 |
0.9 |
0.2 |
8.7 |
6.2 |
Sept. |
0.4 |
0.3 |
1.1 |
2.1 |
2.1 |
0.5 |
0.1 |
0.1 |
-1.2 |
0.3 |
8.8 |
6.0 |
Oct. |
0.6 |
0.3 |
1.3 |
-0.3 |
5.5 |
0.6 |
0.2 |
0.7 |
0.9 |
-0.2 |
8.9 |
6.2 |
Nov. |
1.0 |
0.8 |
1.1 |
1.3 |
2.0 |
0.8 |
0.9 |
1.2 |
2.7 |
0.6 |
9.8 |
6.9 |
Dec. |
0.2 |
0.4 |
-0.4 |
-0.6 |
-3.3 |
0.5 |
0.5 |
0.8 |
1.7 |
0.2 |
9.7 |
6.9 |
Intermediate Demand by Commodity Type
Within intermediate demand in December, prices for processed goods moved down 0.3 percent, the
index for unprocessed goods dropped 5.6 percent, and prices for services advanced 0.8 percent. (See
tables B and C.)
Processed goods for intermediate demand: The index for processed goods for intermediate
demand fell 0.3 percent in December, the first decline since moving down 3.5 percent in April 2020.
Leading the December decrease in prices for processed goods for intermediate demand, the index for
processed energy goods dropped 4.1 percent. Prices for processed foods and feeds moved down 0.5
percent. Conversely, the index for processed materials less foods and energy rose 0.7 percent. In
2021, prices for processed goods for intermediate demand surged 24.4 percent, the largest calendar-
year increase since jumping 28.9 percent in 1974.
Product detail: A major factor in the December decline in prices for processed goods for
intermediate demand was the index for diesel fuel, which dropped 5.9 percent. Prices for utility
natural gas, gasoline, primary basic organic chemicals, liquefied petroleum gas, and meats also
moved down. In contrast, the index for softwood lumber rose 24.4 percent. Prices for ethanol and for
dairy products also increased.
Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate
demand fell 5.6 percent in December, the first decline after eight consecutive increases. Leading the
decrease in the index for unprocessed goods for intermediate demand, prices for unprocessed energy
materials dropped 13.1 percent. The index for unprocessed nonfood materials less energy declined
2.0 percent. Conversely, prices for unprocessed foodstuffs and feedstuffs rose 2.8 percent. In 2021,
the index for unprocessed goods for intermediate demand surged 38.0 percent, the largest calendar-
year increase since data were first calculated in 1948.
Product detail: Sixty percent of the December decrease in prices for unprocessed goods for
intermediate demand can be traced to the index for crude petroleum, which fell 16.4 percent. The
indexes for natural gas, nonferrous metals, raw milk, carbon steel scrap, and fresh fruits and melons
also moved down. In contrast, prices for slaughter poultry rose 17.7 percent. The indexes for grains
and for phosphates also increased.
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.) |
2020 |
|
Dec. |
1.4 |
-0.6 |
2.6 |
1.4 |
1.5 |
2.1 |
-3.6 |
6.5 |
5.3 |
1.3 |
2021 |
|
Jan. |
1.8 |
0.9 |
1.9 |
1.8 |
3.4 |
5.3 |
2.7 |
5.4 |
8.6 |
7.9 |
Feb. |
2.9 |
2.2 |
6.7 |
2.0 |
7.1 |
11.9 |
2.4 |
33.6 |
-0.6 |
29.2 |
Mar. |
3.5 |
1.5 |
7.9 |
2.6 |
12.4 |
-4.2 |
1.6 |
-13.5 |
1.9 |
34.8 |
Apr. |
1.9 |
2.8 |
-2.8 |
3.0 |
18.7 |
2.0 |
8.7 |
-4.8 |
2.2 |
59.2 |
May |
2.9 |
3.0 |
3.8 |
2.7 |
22.3 |
7.2 |
5.0 |
8.3 |
8.9 |
57.8 |
June |
1.8 |
1.8 |
1.1 |
2.0 |
23.0 |
1.8 |
-0.8 |
5.6 |
0.5 |
52.9 |
July |
1.6 |
-1.0 |
3.4 |
1.4 |
23.1 |
2.9 |
-1.9 |
9.7 |
0.5 |
56.0 |
Aug. |
0.9 |
1.5 |
-0.6 |
1.2 |
23.0 |
1.9 |
4.4 |
0.2 |
1.5 |
52.5 |
Sept. |
1.1 |
1.6 |
2.1 |
0.8 |
23.7 |
2.7 |
0.9 |
7.9 |
-2.2 |
48.5 |
Oct. |
2.4 |
-1.0 |
7.2 |
1.6 |
25.7 |
5.8 |
-3.1 |
18.0 |
-1.6 |
55.7 |
Nov. |
1.6 |
0.0 |
3.5 |
1.3 |
26.5 |
2.1 |
1.4 |
1.7 |
3.9 |
49.3 |
Dec. |
-0.3 |
-0.5 |
-4.1 |
0.7 |
24.4 |
-5.6 |
2.8 |
-13.1 |
-2.0 |
38.0 |
Services for intermediate demand: The index for services for intermediate demand rose 0.8 percent
in December, the largest advance since climbing 1.2 percent in June. Leading the broad-based
increase in December, margins for trade services for intermediate demand jumped 1.4 percent. Prices
for services less trade, transportation, and warehousing for intermediate demand and for
transportation and warehousing services for intermediate demand also moved higher, rising 0.4
percent and 1.6 percent, respectively. In 2021, the index for services for intermediate demand
advanced 8.0 percent, the largest calendar-year increase since data were first calculated in 2010.
Product detail: One-fifth of the December rise in prices for services for intermediate demand is
attributable to margins for machinery and equipment parts and supplies wholesaling, which advanced
2.6 percent. The indexes for loan services (partial), arrangement of freight and cargo transportation,
gross rents for retail properties, television advertising times sales, and fuels and lubricants retailing
also moved higher. Conversely, prices for deposit services (partial) fell 4.3 percent. The indexes for
building materials, paint, and hardware wholesaling and for air mail and package delivery services
(excluding USPS) 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.) |
2020 |
|
Dec. |
0.7 |
2.4 |
-0.3 |
0.4 |
2.1 |
2021 |
|
Jan. |
1.1 |
1.3 |
0.5 |
1.2 |
3.0 |
Feb. |
0.3 |
0.1 |
1.2 |
0.1 |
3.6 |
Mar. |
0.6 |
1.2 |
0.9 |
0.5 |
4.3 |
Apr. |
1.3 |
2.7 |
2.3 |
0.6 |
7.3 |
May |
0.6 |
2.1 |
0.9 |
0.1 |
8.4 |
June |
1.2 |
2.4 |
2.0 |
0.6 |
9.3 |
July |
0.6 |
1.1 |
0.7 |
0.5 |
9.5 |
Aug. |
0.4 |
2.0 |
0.8 |
-0.2 |
9.0 |
Sept. |
0.4 |
-1.2 |
2.5 |
0.5 |
8.2 |
Oct. |
0.0 |
0.5 |
0.5 |
-0.3 |
7.5 |
Nov. |
0.3 |
-1.0 |
0.9 |
0.7 |
7.9 |
Dec. |
0.8 |
1.4 |
1.6 |
0.4 |
8.0 |
Intermediate Demand by Production Flow
Stage 4 intermediate demand: Prices for stage 4 intermediate demand increased 0.6 percent in
December after climbing 1.0 percent in November. In December, the index for total services inputs
to stage 4 intermediate demand moved up 0.7 percent, and prices for total goods inputs rose 0.4
percent. (See table D.) Advances in the indexes for machinery and equipment parts and supplies
wholesaling; softwood lumber; biological products (including diagnostics); gross rents for retail
properties; loan services (partial); and warehousing, storage, and related services outweighed
declining prices for gasoline, meats, and deposit services (partial). In 2021, the index for stage 4
intermediate demand moved up 12.4 percent, after rising 2.4 percent in 2020.
Stage 3 intermediate demand: Prices for stage 3 intermediate demand rose 0.4 percent in December
following a 0.8-percent advance in November. In December, the index for total services inputs to
stage 3 intermediate demand moved up 0.8 percent, while prices for total goods inputs were
unchanged. Increases in the indexes for arrangement of freight and cargo transportation, slaughter
poultry, grains, softwood lumber, slaughter cattle, and temporary help services outweighed falling
prices for diesel fuel, raw milk, and deposit services (partial). In 2021, the index for stage 3
intermediate demand jumped 20.2 percent, after inching down 0.1 percent in 2020.
Stage 2 intermediate demand: The index for stage 2 intermediate demand declined 2.3 percent in
December, the largest decrease since a 4.4-percent drop in April 2020. In December, prices for total
goods inputs to stage 2 intermediate demand fell 5.8 percent. In contrast, the index for total services
inputs advanced 1.3 percent. Decreases in prices for crude petroleum, gas fuels, primary basic
organic chemicals, deposit services (partial), nonferrous scrap, and carbon steel scrap outweighed
increases in the indexes for fuels and lubricants retailing, ethanol, and loan services (partial). In 2021,
prices for stage 2 intermediate demand rose 21.2 percent, after moving up 1.4 percent in 2020.
Stage 1 intermediate demand: Prices for stage 1 intermediate demand edged up 0.1 percent in
December following a 1.2-percent increase in November. In December, the index for total services
inputs to stage 1 intermediate demand rose 0.6 percent. Conversely, prices for total goods inputs fell
0.3 percent. In December, advances in the indexes for airline passenger services, ethanol, agricultural
chemicals and chemical products, grains, and machinery and equipment parts and supplies
wholesaling outweighed decreases in the indexes for diesel fuel; utility natural gas; primary basic
organic chemicals; and building materials, paint, and hardware wholesaling. In 2021, prices for stage
1 intermediate demand increased 17.5 percent, following a 2.6-percent rise in 2020.
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 |
2020 |
|
Dec. |
0.9 |
0.7 |
1.1 |
1.1 |
1.7 |
0.7 |
1.8 |
3.9 |
0.3 |
2.8 |
4.2 |
1.1 |
2021 |
|
Jan. |
1.4 |
1.5 |
1.3 |
1.8 |
1.9 |
1.5 |
2.6 |
4.9 |
0.9 |
1.7 |
2.3 |
1.2 |
Feb. |
0.8 |
1.5 |
0.3 |
2.2 |
4.2 |
0.5 |
5.4 |
12.4 |
0.2 |
1.6 |
3.1 |
0.2 |
Mar. |
1.4 |
2.1 |
0.8 |
2.4 |
4.5 |
0.6 |
-1.5 |
-3.9 |
0.6 |
2.2 |
3.7 |
0.9 |
Apr. |
1.5 |
1.7 |
1.2 |
3.0 |
4.9 |
1.3 |
0.4 |
-0.5 |
1.2 |
1.7 |
1.9 |
1.7 |
May |
1.2 |
2.2 |
0.5 |
2.2 |
3.6 |
0.9 |
3.0 |
6.4 |
0.2 |
2.7 |
4.0 |
1.3 |
June |
1.3 |
1.5 |
1.1 |
1.6 |
1.7 |
1.4 |
2.1 |
3.1 |
1.3 |
1.5 |
1.6 |
1.5 |
July |
0.9 |
0.9 |
1.0 |
0.9 |
1.4 |
0.5 |
2.2 |
4.2 |
0.5 |
1.4 |
2.1 |
0.8 |
Aug. |
0.7 |
0.9 |
0.5 |
1.1 |
1.9 |
0.3 |
0.7 |
0.9 |
0.5 |
0.8 |
1.1 |
0.5 |
Sept. |
0.4 |
0.7 |
0.1 |
1.1 |
1.2 |
1.0 |
2.1 |
3.5 |
0.9 |
0.1 |
0.6 |
-0.4 |
Oct. |
0.6 |
1.3 |
0.1 |
1.0 |
1.8 |
0.2 |
3.7 |
7.9 |
-0.1 |
1.1 |
2.5 |
-0.3 |
Nov. |
1.0 |
1.5 |
0.5 |
0.8 |
1.3 |
0.1 |
1.0 |
1.5 |
0.5 |
1.2 |
2.1 |
0.2 |
Dec. |
0.6 |
0.4 |
0.7 |
0.4 |
0.0 |
0.8 |
-2.3 |
-5.8 |
1.3 |
0.1 |
-0.3 |
0.6 |
________________
The Producer Price Index for January 2022 is scheduled to be released on Tuesday, February 15, 2022
at 8:30 a.m. (ET).
*****
Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be Available on
February 11, 2022
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 11, 2022 (2 workdays
prior to the release of PPI data for January 2022 on February 15, 2022):
* Direct seasonal factors for PPI commodity indexes for the year 2022,
* Recalculated seasonal factors for the last 5 years (2017-2021) for PPI commodity indexes,
* Recalculated seasonal factors for the last 5 years (2017-2021) for PPI Final Demand-
Intermediate Demand indexes,
* Recalculated seasonal index data for the last 5 years (2017-2021) 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 2021,
will be available on February 11, 2022:
* 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.
*****
Coronavirus (COVID-19) Impact on December 2021 Producer Price Index Data
For each month from March 2020 to December 2021, BLS has published a summary of the
impact of the pandemic on the Producer Price Index news release and data. The impact summary
for December is available at www.bls.gov/covid19/producer-price-indexes-covid19-impacts-
december-2021.htm. Beginning with publication of January 2022 data in February 2022, this
month-specific impact summary will be discontinued. However, information related to the
impact of the pandemic will continue to be available at www.bls.gov/covid19/effects-of-covid-
19-pandemic-on-producer-price-index.htm.
United States Department of Labor
