Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 17-0035 
8:30 a.m. (EST), Friday, January, 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 - DECEMBER 2016


The Producer Price Index for final demand increased 0.3 percent in December, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.4 
percent in November and were unchanged in October. (See table A.) On an unadjusted basis, the 
final demand index climbed 1.6 percent in 2016 after falling 1.1 percent in 2015.

In December, nearly 80 percent of the advance in the final demand index is attributable to a 0.7-
percent increase in prices for final demand goods. The index for final demand services inched up 
0.1 percent.

Prices for final demand less foods, energy, and trade services moved up 0.1 percent in December 
after rising 0.2 percent in November. In 2016, the index for final demand less foods, energy, and 
trade services climbed 1.7 percent following a 0.3-percent advance in 2015.

Final Demand

Final demand goods: Prices for final demand goods jumped 0.7 percent in December, the 
largest increase since a 0.7-percent rise in June. Sixty percent of the December broad-based 
advance can be traced to the index for final demand energy, which climbed 2.6 percent. Prices 
for final demand goods less foods and energy rose 0.3 percent, and the final demand foods index 
increased 0.7 percent.

Product detail: Accounting for almost half of the December jump in final demand goods prices, 
the index for gasoline climbed 7.8 percent. Prices for light motor trucks, jet fuel, iron and steel 
scrap, chicken eggs, and liquefied petroleum gas also increased. In contrast, the index for fresh 
fruits and melons fell 13.6 percent. Prices for residential electric power and for plastic resins and 
materials also decreased. (See table 4.)

Final demand services: The index for final demand services inched up 0.1 percent in December 
after increasing 0.5 percent in November. About 70 percent of the December advance can be 
attributed to prices for final demand services less trade, transportation, and warehousing, which 
rose 0.2 percent. The index for final demand trade services also advanced 0.2 percent. (Trade 
indexes measure changes in margins received by wholesalers and retailers.) Conversely, prices 
for final demand transportation and warehousing services declined 0.4 percent.

Product detail: Most of the December increase in the index for final demand services can be 
traced to prices for securities brokerage, dealing, investment advice, and related services, which 
advanced 4.4 percent. The indexes for machinery, equipment, parts, and supplies wholesaling; 
apparel, footwear, and accessories retailing; food retailing; and health, beauty, and optical goods 
retailing also moved higher. In contrast, prices for airline passenger services fell 2.4 percent. The 
indexes for fuels and lubricants retailing, loan services (partial), and apparel wholesaling 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

2015

Dec.

-0.1 0.1 -0.6 -0.9 -3.5 0.1 0.3 0.4 -0.8 0.2 -1.1 0.3

2016

Jan.

0.4 0.3 -0.5 0.9 -4.3 0.1 0.9 1.7 0.5 0.6 0.0 0.8

Feb.

-0.3 0.1 -0.7 0.1 -4.9 0.0 -0.1 -0.5 -0.3 0.1 0.1 0.9

Mar.

-0.2 0.1 0.0 -1.4 1.1 0.2 -0.3 -0.7 -0.3 0.1 -0.1 0.9

Apr.

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

May

0.3 0.0 0.8 0.6 3.7 0.2 0.0 0.1 -0.7 0.0 0.0 1.0

June

0.5 0.3 0.7 0.5 3.1 0.3 0.4 0.7 0.2 0.3 0.2 1.0

July

-0.2 0.2 -0.2 -0.9 -0.3 0.0 0.0 -1.0 0.5 0.4 0.0 1.0

Aug.(1)

-0.2 0.0 -0.4 -1.3 -1.2 0.1 -0.3 -0.7 -0.4 0.1 0.0 1.2

Sept.(1)

0.3 0.3 0.5 0.3 2.5 0.1 0.3 -0.1 0.9 0.3 0.7 1.5

Oct.

0.0 -0.1 0.4 -0.8 2.5 0.1 -0.3 -0.3 0.2 -0.3 0.8 1.6

Nov.

0.4 0.2 0.2 0.6 -0.3 0.2 0.5 1.3 0.1 0.1 1.3 1.8

Dec.

0.3 0.1 0.7 0.7 2.6 0.3 0.1 0.2 -0.4 0.2 1.6 1.7

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for August 2016 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in December, prices for processed goods advanced 0.5 percent, the 
index for unprocessed goods jumped 8.3 percent, and prices for services rose 0.4 percent. (See tables 
B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand 
moved up 0.5 percent in December, the fourth straight increase. In December, over 70 percent of the 
broad-based rise can be traced to the index for processed energy goods, which advanced 2.1 percent. 
Prices for processed materials less foods and energy and for processed foods and feeds also moved 
up, rising 0.1 percent and 0.8 percent, respectively. In 2016, the index for processed goods for 
intermediate demand climbed 1.8 percent compared with a 6.6-percent drop in 2015. 

Product detail: A major factor in the December advance in the index for processed goods for 
intermediate demand was jet fuel prices, which increased 12.1 percent. The indexes for gasoline; 
paperboard; utility natural gas; liquefied petroleum gas; and natural, processed, and imitation cheese 
also moved higher. Conversely, prices for plastic resins and materials declined 3.3 percent. The 
indexes for lubricating oil base stocks and for beef and veal also fell. (See table 5.)

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate 
demand jumped 8.3 percent in December, the largest increase since a 9.0-percent advance in 
February 2007. In December, 60 percent of the broad-based increase is attributable to a 14.6-percent 
advance in the index for unprocessed energy materials. Prices for unprocessed foodstuffs and 
feedstuffs and for unprocessed nonfood materials less energy also moved higher, rising 5.8 percent 
and 3.6 percent, respectively. In 2016, the index for unprocessed goods for intermediate demand 
jumped 13.2 percent following a 25.3-percent drop in 2015.

Product detail: In December, over one-third of the increase in prices for unprocessed goods for 
intermediate demand can be traced to the index for crude petroleum, which advanced 18.9 percent. 
Prices for natural gas, raw milk, slaughter barrows and gilts, iron and steel scrap, and slaughter steers 
and heifers also increased. In contrast, the index for fresh fruits and melons fell 13.6 percent. Prices 
for coal and phosphates 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.)

2015

Dec.

-1.1 -2.0 -4.0 -0.4 -6.6 -3.9 -3.0 -7.2 -0.9 -25.3

2016

Jan.

-0.9 -0.7 -3.4 -0.4 -5.3 0.2 4.8 -6.0 -0.5 -17.5

Feb.

-0.9 0.6 -4.8 -0.3 -5.8 -1.9 -1.0 -5.7 0.6 -16.4

Mar.

0.0 -0.6 0.5 0.0 -5.5 1.6 -0.8 3.9 2.5 -14.4

Apr.

0.3 -0.4 1.0 0.3 -4.6 2.2 -2.1 8.3 3.5 -13.0

May

0.9 1.0 3.7 0.3 -4.5 3.2 -0.1 7.9 3.8 -12.8

June

0.9 1.5 3.7 0.2 -4.1 2.3 1.0 6.4 -0.2 -10.8

July

0.2 -0.2 0.7 0.2 -3.7 0.1 -2.9 5.4 -0.5 -7.6

Aug.(1)

-0.1 -1.3 -1.5 0.3 -3.0 -2.0 -2.0 -4.1 0.7 -6.5

Sept.(1)

0.4 -0.9 2.5 0.2 -1.2 -0.7 -3.0 3.1 -1.7 -4.8

Oct.

0.3 -0.7 1.2 0.2 -0.5 -0.6 -5.7 5.8 -1.1 -4.2

Nov.

0.3 0.8 -0.8 0.4 0.2 0.0 3.5 -5.0 2.4 0.2

Dec.

0.5 0.8 2.1 0.1 1.8 8.3 5.8 14.6 3.6 13.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for August 2016 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 0.4 
percent in December following a 0.2-percent increase in November. Almost 60 percent of the broad-
based December rise can be traced to prices for services less trade, transportation, and warehousing 
for intermediate demand, which climbed 0.4 percent. Margins for trade services for intermediate 
demand advanced 1.1 percent, and the index for transportation and warehousing services for 
intermediate demand edged up 0.1 percent. In 2016, prices for services for intermediate demand rose 
2.5 percent after increasing 0.5 percent in 2015.

Product detail: A major factor in the December increase in the index for services for intermediate 
demand was prices for advertising space sales in newspapers, which rose 9.2 percent. The indexes for 
securities brokerage, dealing, investment advice, and related services; paper and plastics products 
wholesaling; machinery and equipment parts and supplies wholesaling; metals, minerals, and ores 
wholesaling; and courier, messenger, and U.S. postal services also advanced. Conversely, prices for 
loan services (partial) fell 1.7 percent. The indexes for fuels and lubricants retailing and for airline 
passenger services also moved lower.

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.)

2015

Dec.

0.2 -1.0 -0.2 0.6 0.5

2016

Jan.

1.3 0.5 -0.5 1.9 1.5

Feb.

0.2 -0.3 0.0 0.3 1.9

Mar.

0.0 -0.1 -0.1 0.1 1.6

Apr.

0.0 -0.1 -0.5 0.1 1.1

May

-0.2 0.3 -0.1 -0.3 1.1

June

0.4 1.1 0.3 0.4 1.4

July

0.4 0.2 0.4 0.5 1.7

Aug.(1)

-0.2 -1.6 0.1 0.1 1.3

Sept.(1)

0.6 0.0 0.4 0.7 2.5

Oct.

-0.6 -0.5 0.2 -0.8 2.3

Nov.

0.2 0.2 0.0 0.3 2.3

Dec.

0.4 1.1 0.1 0.4 2.5

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for August 2016 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 increased 0.4 percent in 
December after rising 0.2 percent in November. In December, prices for total services inputs to stage 
4 intermediate demand moved up 0.4 percent, and the index for total goods inputs advanced 0.3 
percent. Increases in the indexes for securities brokerage, dealing, investment advice, and related 
services; machinery and equipment parts and supplies wholesaling; paper and plastics products 
wholesaling; gasoline; natural, processed, and imitation cheese; and metals, minerals, and ores 
wholesaling outweighed decreases in the indexes for loan services (partial), portfolio management, 
and fresh fruits and melons. In 2016, prices for stage 4 intermediate demand rose 1.7 percent after 
declining 1.5 percent in 2015.

Stage 3 intermediate demand: The index for stage 3 intermediate demand moved up 1.8 percent in 
December following a 0.5-percent climb in November. In December, prices for total goods inputs to 
stage 3 intermediate demand advanced 2.7 percent, and the index for total services inputs rose 0.9 
percent. Increases in prices for raw milk; gasoline; slaughter barrows and gilts; advertising space 
sales in newspapers; jet fuel; and securities brokerage, dealing, investment advice, and related 
services outweighed declines in the indexes for loan services (partial), fuels and lubricants retailing, 
and plastic resins and materials. In 2016, prices for stage 3 intermediate demand moved up 1.9 
percent after falling 6.7 percent in 2015.

Stage 2 intermediate demand: The index for stage 2 intermediate demand jumped 2.2 percent in 
December following a 0.5-percent decline in November. In December, prices for total goods inputs 
to stage 2 intermediate demand rose 4.4 percent, and the index for total services inputs climbed 0.5 
percent. Increases in the indexes for crude petroleum; gas fuels; securities brokerage, dealing, 
investment advice, and related services; paperboard; cable network advertising time sales; and 
oilseeds outweighed declining prices for plastic resins and materials, portfolio management, and 
airline passenger services. In 2016, the index for stage 2 intermediate demand moved up 6.5 percent 
following an 8.3-percent decline in 2015.

Stage 1 intermediate demand: The index for stage 1 intermediate demand climbed 1.0 percent in 
December after rising 0.7 percent in November. In December, prices for total goods inputs to stage 1 
intermediate demand moved up 1.6 percent, and the index for total services inputs advanced 0.2 
percent. Increases in prices for iron and steel scrap; securities brokerage, dealing, investment advice, 
and related services; crude petroleum; gas fuels; nonferrous scrap; and gasoline outweighed declining 
indexes for loan services (partial), fuels and lubricants retailing, and residual fuel. In 2016, the index 
for stage 1 intermediate demand rose 4.1 percent after declining 8.6 percent in 2015.

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

2015

Dec.

-0.4 -0.8 0.0 -0.9 -2.1 0.2 -0.5 -2.4 0.7 -1.4 -2.2 -0.4

2016

Jan.

0.3 -0.3 1.0 0.1 -0.5 0.9 -0.3 -2.3 1.3 0.1 -1.2 1.5

Feb.

-0.1 -0.4 0.1 -0.8 -2.0 0.3 -0.6 -2.0 0.2 -0.8 -1.4 0.1

Mar.

-0.1 0.0 -0.1 0.1 0.1 0.0 0.4 0.7 0.2 0.4 1.0 -0.3

Apr.

0.1 0.1 0.1 0.0 0.2 -0.1 0.8 2.4 -0.2 0.8 1.3 0.2

May

0.2 0.4 -0.1 0.4 0.6 0.0 1.3 3.2 0.1 1.1 2.2 -0.4

June

0.5 0.6 0.5 0.8 1.2 0.4 1.2 2.6 0.2 1.0 1.0 1.0

July

0.2 0.1 0.4 0.3 0.2 0.4 0.8 1.0 0.8 0.0 -0.2 0.3

Aug.(1)

-0.2 -0.1 -0.3 -0.7 -1.0 -0.4 -0.5 -1.0 -0.2 -0.5 -0.2 -0.8

Sept.(1)

0.4 0.3 0.4 0.3 -0.1 0.5 0.8 1.0 0.7 0.6 0.5 0.7

Oct.

-0.2 -0.1 -0.5 -0.7 -0.7 -0.5 0.6 2.2 -0.5 -0.2 0.3 -0.9

Nov.

0.2 0.3 0.2 0.5 0.7 0.1 -0.5 -1.2 0.0 0.7 1.1 0.3

Dec.

0.4 0.3 0.4 1.8 2.7 0.9 2.2 4.4 0.5 1.0 1.6 0.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for August 2016 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for January 2017 is scheduled to be released on Tuesday, 
February 14, 2017 at 8:30 a.m. (EST).


                                          *****
       Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be 
                               Available on February 10, 2017

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 10, 2017 (2 workdays 
prior to the release of PPI data for January 2017 on February 14):

*  Direct seasonal factors for PPI commodity indexes for the year 2017,
*  Recalculated seasonal factors for the last 5 years (2012-2016) for PPI commodity indexes, 
*  Recalculated seasonal factors for the last 5 years (2012-2016) for PPI Final Demand-
   Intermediate Demand indexes, 
*  Recalculated seasonal index data for the last 5 years (2012-2016) 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 as of December 2016 will be available on 
February 10, 2017:  

*  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

To obtain this information, visit the PPI website at www.bls.gov/ppi, or contact 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: January 13, 2017