Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 18-1789 
8:30 a.m. (EST), Friday, November 9, 2018

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 2018


The Producer Price Index for final demand rose 0.6 percent in October, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.2 percent in 
September and declined 0.1 percent in August. (See table A.) On an unadjusted basis, the final 
demand index increased 2.9 percent for the 12 months ended in October.

In October, over 60 percent of the rise in final demand prices can be traced to a 0.7-percent 
advance in the index for final demand services. Prices for final demand goods moved up 0.6 
percent.

The index for final demand less foods, energy, and trade services rose 0.2 percent in October 
after climbing 0.4 percent in September. For the 12 months ended in October, prices for final 
demand less foods, energy, and trade services advanced 2.8 percent.

Final Demand

Final demand services: The index for final demand services increased 0.7 percent in October, the 
largest advance since climbing 0.8 percent in January 2016. Nearly three-fourths of the broad-based 
October rise can be traced to margins for final demand trade services, which moved up 1.6 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 increased 0.2 percent and 0.6 percent, respectively. 

Product detail: About one-fifth of the October advance in prices for final demand services is 
attributable to a 1.2-percent rise in margins for machinery, equipment, parts, and supplies 
wholesaling. The indexes for food and alcohol retailing; health, beauty, and optical goods retailing; 
inpatient care; apparel, jewelry, footwear, and accessories retailing; and traveler accommodation 
services also moved higher. In contrast, prices for loan services (partial) fell 0.5 percent. The indexes 
for hospital outpatient care and furniture retailing also declined. (See table 4.)

Final demand goods: The index for final demand goods climbed 0.6 percent in October, the largest 
rise since advancing 0.9 percent in May. Nearly three-fourths of the October increase can be traced to 
prices for final demand energy, which moved up 2.7 percent. The index for final demand foods rose 
1.0 percent. Prices for final demand goods less foods and energy were unchanged.  

Product detail: Over 60 percent of the October increase in prices for final demand goods is 
attributable to the gasoline index, which jumped 7.6 percent. Prices for diesel fuel, fresh and dry 
vegetables, beef and veal, cigarettes, and jet fuel also moved higher. Conversely, the motor vehicles 
index fell 0.7 percent. (In accordance with usual practice, most new-model-year passenger car and 
light motor trucks were introduced into the PPI in October. See Report on Quality Changes for 2019 
Model Vehicles at www.bls.gov/web/ppi/ppimotveh.htm.) Prices for liquefied petroleum gas and for 
fresh fruits and melons 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

2017

Oct.

0.4 0.4 0.3 0.3 0.2 0.3 0.5 0.9 0.7 0.4 2.8 2.4

Nov.

0.4 0.2 0.8 0.2 3.5 0.3 0.1 -0.3 0.9 0.2 3.0 2.4

Dec.

0.0 0.1 0.1 -0.2 0.2 0.1 -0.2 -0.4 -0.6 0.2 2.5 2.3

2018

Jan.

0.5 0.5 0.6 0.1 2.9 0.3 0.5 0.4 -0.2 0.5 2.6 2.5

Feb.

0.2 0.3 0.1 -0.6 0.1 0.3 0.2 0.1 1.0 0.3 2.8 2.7

Mar.

0.2 0.3 0.3 2.2 -2.0 0.3 0.3 -0.1 0.5 0.3 2.9 2.9

Apr.

0.2 0.2 0.0 -1.3 0.4 0.3 0.2 0.3 0.7 0.0 2.7 2.6

May

0.5 0.3 0.9 0.4 3.7 0.2 0.3 0.5 0.7 0.2 3.1 2.7

June(1)

0.3 0.2 0.2 -1.2 1.5 0.3 0.3 0.5 0.7 0.3 3.3 2.7

July(1)

0.0 0.2 0.0 -0.1 -0.8 0.3 0.0 -0.2 0.3 0.0 3.3 2.8

Aug.

-0.1 0.1 0.0 -0.6 0.4 0.0 -0.1 -0.9 -0.6 0.3 2.8 2.9

Sept.

0.2 0.4 -0.1 -0.6 -0.8 0.2 0.3 0.1 1.8 0.3 2.6 2.9

Oct.

0.6 0.2 0.6 1.0 2.7 0.0 0.7 1.6 0.6 0.2 2.9 2.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for June 2018 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 rose 0.8 percent, the index for 
unprocessed goods increased 3.6 percent, and prices for services moved up 0.4 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand increased 0.8 percent in October after no change in each of the previous two months. In 
October, the broad-based rise was led by prices for processed energy goods, which advanced 2.6 
percent. The indexes for processed materials less foods and energy and for processed foods and feeds 
both moved up 0.4 percent. For the 12 months ended in October, the index for processed goods for 
intermediate demand climbed 5.9 percent. 

Product detail: In October, a major factor in the rise in prices for processed goods for intermediate 
demand was the index for diesel fuel, which jumped 5.4 percent. The indexes for basic organic 
chemicals, gasoline, utility natural gas, jet fuel, and beef and veal also increased. In contrast, prices 
for softwood lumber dropped 10.3 percent. The indexes for liquefied petroleum gas and natural, 
processed, and imitation cheese also fell. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand moved up 3.6 percent in October, the largest increase since a 3.6-percent rise in January 
2017. Over half of the October advance is attributable to a 5.8-percent jump in the index for 
unprocessed foodstuffs and feedstuffs. Prices for unprocessed energy materials climbed 3.6 percent, 
while the index for unprocessed nonfood materials less energy was unchanged. For the 12 months 
ended in October, prices for unprocessed goods for intermediate demand rose 7.8 percent.

Product detail: A major factor in the October increase in prices for unprocessed goods for 
intermediate demand was the index for slaughter livestock, which jumped 9.6 percent. Prices for 
crude petroleum, raw milk, slaughter chickens, oilseeds, and copper base scrap also moved higher. 
Conversely, the index for natural gas declined 1.0 percent. Prices for citrus fruits and aluminum base 
scrap 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.)

2017

Oct.

0.6 0.5 1.6 0.4 4.8 0.5 1.2 1.8 -2.6 8.5

Nov.

0.8 -0.2 2.5 0.5 5.4 2.6 2.5 4.7 -0.2 11.0

Dec.

0.3 0.1 0.8 0.2 5.0 1.3 -0.7 3.3 1.8 5.0

2018

Jan.

0.8 0.1 2.1 0.5 4.7 1.9 -0.6 3.5 3.5 3.3

Feb.

0.6 1.2 0.8 0.5 4.8 1.7 2.2 2.3 0.0 5.3

Mar.

-0.1 1.0 -2.9 0.6 4.8 -3.5 -0.2 -9.2 1.2 5.3

Apr.

0.4 0.3 1.1 0.3 4.8 0.9 -2.4 4.1 0.6 4.2

May

1.2 0.4 3.5 0.8 6.2 2.2 0.2 5.1 -0.2 7.4

June(1)

0.6 -1.3 2.3 0.4 6.6 -1.0 -0.8 -1.8 0.5 6.5

July(1)

0.1 -0.7 -0.8 0.4 6.8 2.1 -2.5 7.9 -1.7 8.2

Aug.

0.0 -0.8 -0.3 0.2 6.3 -5.8 -5.2 -7.9 -1.9 2.9

Sept.

0.0 -1.4 -0.2 0.2 5.8 1.7 0.6 4.7 -2.8 4.3

Oct.

0.8 0.4 2.6 0.4 5.9 3.6 5.8 3.6 0.0 7.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for June 2018 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 rose 0.4 percent 
in October after a 0.5-percent increase in September. In October, over 60 percent of the broad-based 
advance can be traced to margins for trade services for intermediate demand, which climbed 1.5 
percent. The index for services less trade, transportation, and warehousing for intermediate demand 
moved up 0.2 percent, and prices for transportation and warehousing services for intermediate 
demand rose 0.3 percent. For the 12 months ended in October, the index for services for intermediate 
demand increased 3.2 percent.

Product detail: In October, a quarter of the rise in the index for services for intermediate demand can 
be traced to margins for metals, minerals, and ores wholesaling, which jumped 7.8 percent. The 
indexes for broadcast and network television advertising time sales; paper and plastics products 
wholesaling; services related to securities brokerage and dealing (partial); portfolio management; and 
management, scientific, and technical consulting services also moved higher. In contrast, gross rents 
for retail properties fell 4.1 percent. Prices for cable network advertising time sales and passenger car 
rental 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.)

2017

Oct.

0.6 1.0 0.6 0.6 3.3

Nov.

0.2 -0.3 0.6 0.2 3.2

Dec.

0.2 0.4 -0.1 0.2 2.9

2018

Jan.

0.3 0.4 0.1 0.3 3.2

Feb.

0.3 0.6 0.6 0.3 3.1

Mar.

0.3 0.3 0.4 0.1 3.2

Apr.

0.3 0.8 0.4 0.2 3.0

May

0.3 0.4 0.5 0.2 3.1

June(1)

0.2 0.5 0.3 0.1 3.0

July(1)

0.2 -0.2 0.2 0.2 3.0

Aug.

0.1 -1.1 -0.1 0.5 2.9

Sept.

0.5 0.7 1.0 0.3 3.3

Oct.

0.4 1.5 0.3 0.2 3.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for June 2018 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 
October, the largest rise since moving up 0.5 percent in May. In October, the index for total goods 
inputs to stage 4 intermediate demand increased 0.5 percent, and prices for total services inputs 
climbed 0.4 percent. (See table D.) Advances in the indexes for diesel fuel; metals, minerals, and ores 
wholesaling; paper and plastics products wholesaling; gasoline; portfolio management; and basic 
organic chemicals outweighed decreases in prices for gross rents for retail properties, softwood 
lumber, and citrus fruits. (See table 6.) For the 12 months ended in October, the index for stage 4 
intermediate demand moved up 3.6 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand moved up 1.6 percent in 
October, the largest rise since a 1.6-percent increase in February 2011. In October, prices for total 
goods inputs to stage 3 intermediate demand jumped 2.9 percent, and the index for total services 
inputs climbed 0.4 percent. Increases in the indexes for slaughter livestock; gasoline; raw milk; jet 
fuel; slaughter chickens; and metals, minerals, and ores wholesaling outweighed declines in prices 
for gross rents for retail properties, integrated microcircuits, and passenger car rental. For the 12 
months ended in October, the index for stage 3 intermediate demand rose 5.3 percent.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand climbed 0.8 percent in 
October following a 0.9-percent rise in September. In October, the index for total goods inputs to 
stage 2 intermediate demand increased 1.4 percent, and prices for total services inputs moved up 0.3 
percent. Advances in the indexes for crude petroleum; services related to securities brokerage and 
dealing (partial); basic organic chemicals; portfolio management; oilseeds; and management, 
scientific, and technical consulting services outweighed decreases in prices for gas fuels, cable 
network advertising time sales, and softwood lumber. For the 12 months ended in October, the index 
for stage 2 intermediate demand rose 6.1 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand moved up 1.1 percent in 
October, the largest rise since a 1.1-percent increase in January. In October, prices for total goods 
inputs to stage 1 intermediate demand advanced 1.5 percent, and the index for total services inputs 
climbed 0.5 percent. Increases in the indexes for basic organic chemicals; diesel fuel; metals, 
minerals, and ores wholesaling; gasoline; crude petroleum; and paper and plastics products 
wholesaling outweighed declines in prices for aluminum base scrap, gross rents for retail properties, 
and passenger car rental. For the 12 months ended in October, the index for stage 1 intermediate 
demand advanced 6.0 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

2017

Oct.

0.5 0.4 0.7 0.8 0.8 0.7 0.7 0.8 0.5 0.5 0.3 0.9

Nov.

0.4 0.6 0.2 1.0 1.8 0.1 1.0 1.7 0.3 0.7 1.4 -0.1

Dec.

0.1 0.1 0.1 0.3 0.3 0.3 0.6 1.3 0.1 0.5 0.9 0.0

2018

Jan.

0.5 0.8 0.3 0.6 1.0 0.3 0.9 1.5 0.5 1.1 1.9 0.2

Feb.

0.3 0.2 0.3 0.7 1.0 0.3 0.8 1.4 0.3 0.3 0.3 0.3

Mar.

0.3 0.5 0.2 -0.3 -0.7 0.2 -1.2 -3.1 0.3 0.0 -0.2 0.3

Apr.

0.3 0.3 0.3 0.1 -0.3 0.3 0.8 1.9 0.2 0.4 0.5 0.3

May

0.5 0.9 0.2 1.0 1.9 0.3 1.3 2.8 0.1 1.0 1.4 0.7

June(1)

0.3 0.4 0.3 0.5 0.9 0.2 -0.1 -0.4 0.1 0.6 0.8 0.3

July(1)

0.0 0.1 -0.1 0.0 -0.1 0.1 1.1 2.3 0.3 0.3 0.3 0.4

Aug.

0.0 -0.1 0.2 -0.8 -1.5 0.1 -1.2 -2.8 0.1 -0.5 -0.8 -0.2

Sept.

0.3 0.0 0.5 0.3 0.2 0.4 0.9 1.9 0.2 0.0 -0.4 0.6

Oct.

0.5 0.5 0.4 1.6 2.9 0.4 0.8 1.4 0.3 1.1 1.5 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 2018 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for November 2018 is scheduled to be released on Tuesday, 
December 11, 2018 at 8:30 a.m. (EST).


                                              *****

                                     Resampling of Industries

Effective with the release of data for October 2018, the Producer Price Index (PPI) includes data 
for 21 resampled industries classified according to the 2017 North American Industry 
Classification System (NAICS). The Bureau of Labor Statistics periodically updates the sample 
of producers providing data for the PPI to reflect current conditions more accurately when the 
structure, membership, technology, or product mix of an industry shifts. The first results of this 
systematic process were published in July 1986. Subsequent efforts have been completed at 
regular intervals.  

For information on index additions, deletions, and recodes effective October 2018, see the 
current issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201810.pdf, or contact 
the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-
7705.

NAICS
Code                    Industry
311111        Dog and cat food manufacturing
311313        Beet sugar manufacturing
312112        Bottled water manufacturing
314999        All other miscellaneous textile product mills
321999        Miscellaneous wood product manufacturing
322299        All other converted paper product manufacturing
32311K        Commercial printing, except screen and books
325211        Plastics material and resins manufacturing
331314        Secondary smelting and alloying of aluminum
333922        Conveyor and conveying equipment manufacturing
334512        Automatic environmental control manufacturing
335121        Residential electric lighting fixture manufacturing
335122        Nonresidential electric lighting fixture manufacturing
336310        Motor vehicle gasoline engine and engine parts manufacturing
336360        Motor vehicle seating and interior trim manufacturing
339993        Fastener, button, needle, and pin manufacturing
444110        Home centers
444120        Paint and wallpaper stores
481111        Scheduled passenger air transportation
531320        Offices of real estate appraisers
621991        Blood and organ banks

                                              *****


       Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be 
                                Available on February 12, 2019

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 12, 2019 (2 workdays 
prior to the release of PPI data for January 2019 on February 14, 2019):

*  Direct seasonal factors for PPI commodity indexes for the year 2019,
*  Recalculated seasonal factors for the last 5 years (2014-2018) for PPI commodity indexes, 
*  Recalculated seasonal factors for the last 5 years (2014-2018) for PPI Final Demand-
   Intermediate Demand indexes, 
*  Recalculated seasonal index data for the last 5 years (2014-2018) 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 2018, 
will be available on February 12, 2019:  

*  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.

                                              *****

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Last Modified Date: November 09, 2018