Department of Labor Logo United States Department of Labor
Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Economic News Release
PRINT:Print
PPI PPI Program Links

Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 21-0278
8:30 a.m. (ET), Wednesday, February 17, 2021

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


                            PRODUCER PRICE INDEXES - JANUARY 2021


The Producer Price Index for final demand increased 1.3 percent in January, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. This advance is the largest since the index 
began in December 2009. Final demand prices rose 0.3 percent in December and 0.1 percent in 
November. (See table A.) On an unadjusted basis, the index for final demand moved up 1.7 
percent for the 12 months ended January 2021, the largest increase since climbing 2.0 percent for 
the 12 months ended January 2020.

Two-thirds of the January advance in prices for final demand can be traced to a 1.3-percent rise 
in the index for final demand services. Prices for final demand goods increased 1.4 percent.

Prices for final demand less foods, energy, and trade services moved up 1.2 percent in January, 
the largest advance since the index began in September 2013. For the 12 months ended in 
January, prices for final demand less foods, energy, and trade services rose 2.0 percent, the 
largest increase since a 2.1-percent advance for the 12 months ended June 2019.

Final Demand

Final demand services: Prices for final demand services rose 1.3 percent in January, the largest 
advance since the index began in December 2009. Over 70 percent of the broad-based January 
increase is attributable to a 1.4-percent jump in prices for final demand services less trade, 
transportation, and warehousing. The indexes for final demand trade services and for final demand 
transportation and warehousing services also moved higher, 1.0 percent and 1.3 percent, respectively. 
(Trade indexes measure changes in margins received by wholesalers and retailers.)

Product Detail: One-fourth of the January advance in the index for final demand services can be 
traced to a 9.4-percent rise in prices for portfolio management. The indexes for outpatient care 
(partial); guestroom rental; machinery and vehicle wholesaling; apparel, jewelry, footwear, and 
accessories retailing; and truck transportation of freight also moved higher. Conversely, margins for 
automobile retailing (partial) fell 7.7 percent. The indexes for food retailing and for property and 
casualty insurance also declined. (See table 4.)

Final demand goods: Prices for final demand goods moved up 1.4 percent in January, the largest 
increase since the index jumped 1.4 percent in May 2020. Nearly 60 percent of the broad-based 
January advance is attributable to a 5.1-percent rise in prices for final demand energy. The indexes 
for final demand goods less foods and energy and for final demand foods also climbed, 0.8 percent 
and 0.2 percent, respectively. 

Product Detail: Forty percent of the January increase in prices for final demand goods can be traced 
to a 13.6-percent jump in the index for gasoline. Prices for iron and steel scrap, oilseeds, industrial 
chemicals, diesel fuel, and light motor trucks also rose. In contrast, the index for beef and veal 
declined 8.4 percent. Prices for fresh and dry vegetables and for search, detection, navigation, and 
guidance systems and equipment also fell.

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

Jan.

0.3 0.4 0.3 0.2 0.4 0.3 0.4 0.3 -1.1 0.6 2.0 1.5

Feb.

-0.5 -0.2 -0.7 -1.7 -2.6 0.1 -0.5 -0.8 -0.4 -0.3 1.1 1.4

Mar.

-0.5 -0.2 -1.7 -0.1 -10.2 0.0 0.2 1.0 -3.2 0.1 0.3 1.0

Apr.

-1.1 -0.8 -2.8 -0.3 -17.3 -0.3 -0.4 1.1 -3.4 -0.8 -1.5 -0.1

May

0.4 0.1 1.4 5.7 3.7 -0.1 0.1 -0.2 1.4 0.1 -1.1 -0.2

June

0.3 0.3 0.4 -4.9 9.6 0.1 0.2 -0.1 1.3 0.3 -0.7 0.1

July

0.5 0.4 0.5 -0.9 4.1 0.3 0.5 0.9 -0.6 0.4 -0.3 0.3

Aug.

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

Sept.

0.3 0.4 0.4 1.7 -0.3 0.3 0.2 -0.3 0.6 0.4 0.3 0.8

Oct.

0.5 0.1 0.6 1.9 0.8 0.2 0.5 1.3 0.6 0.0 0.5 0.8

Nov.

0.1 0.2 0.3 0.6 1.3 0.2 -0.2 -0.6 -0.7 0.2 0.8 0.9

Dec.

0.3 0.4 1.0 -0.2 4.9 0.5 -0.1 -0.8 0.3 0.2 0.8 1.1

2021

Jan.

1.3 1.2 1.4 0.2 5.1 0.8 1.3 1.0 1.3 1.4 1.7 2.0

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2020. In addition, indexes for September 2020 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Intermediate Demand by Commodity Type

Within intermediate demand in January, prices for processed goods advanced 1.7 percent, the index 
for unprocessed goods rose 3.8 percent, and prices for services increased 1.3 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand rose 1.7 percent in January, the largest advance since jumping 1.7 percent in January 2010. 
Over three-quarters of the broad-based January 2021 increase is attributable to prices for processed 
materials less foods and energy, which climbed 1.8 percent. The indexes for processed energy goods 
and for processed foods and feeds moved up 2.0 percent and 0.1 percent, respectively. For the 12 
months ended in January, prices for processed goods for intermediate demand rose 3.1 percent, the 
largest advance since increasing 4.5 percent for the 12 months ended November 2018.

Product detail: In January, nearly a quarter of the rise in the index for processed goods for 
intermediate demand can be traced to a 7.0-percent advance in prices for industrial chemicals. The 
indexes for diesel fuel, gasoline, steel mill products, softwood lumber, and prepared animal feeds 
also moved higher. Conversely, prices for natural gas to electric utilities dropped 21.1 percent. The 
indexes for beef and veal and for primary nonferrous metals also fell. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand advanced 3.8 percent in January, the ninth consecutive increase. About two-thirds of the 
January rise can be traced to prices for unprocessed nonfood materials less energy, which jumped 8.9 
percent. The index for unprocessed energy materials climbed 5.3 percent. In contrast, prices for 
unprocessed foodstuffs and feedstuffs declined 1.2 percent. For the 12 months ended in January, the 
index for unprocessed goods for intermediate demand increased 6.6 percent, the largest advance 
since rising 7.6 percent for the 12 months ended October 2018.

Product detail: Over half of the January increase in prices for unprocessed goods for intermediate 
demand is attributable to the index for iron and steel scrap, which jumped 20.6 percent. Prices for 
crude petroleum, grains, oilseeds, nonferrous metals, and fresh fruits and melons also moved higher. 
Conversely, the index for raw milk dropped 20.4 percent. Prices for natural gas and recyclable 
plastics also declined.

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

Jan.

-0.2 -0.3 -0.8 0.1 -1.0 -1.3 -0.4 -5.9 4.9 -3.7

Feb.

-0.7 -0.6 -3.1 -0.1 -2.0 -6.5 -4.1 -12.2 -1.3 -7.8

Mar.

-1.6 -0.6 -7.7 -0.2 -4.0 -8.1 -3.5 -20.0 1.2 -15.6

Apr.

-3.5 0.1 -14.3 -1.5 -7.6 -13.7 -11.7 -25.2 -3.6 -28.6

May

0.0 6.4 -1.2 -0.6 -7.2 8.4 7.4 19.2 0.5 -20.1

June

1.2 -5.0 9.4 0.5 -5.0 5.4 1.5 15.4 0.9 -13.8

July

1.4 -0.5 6.1 0.6 -3.7 0.6 0.5 0.8 0.5 -13.9

Aug.

0.9 -0.7 2.6 0.8 -2.3 4.0 1.8 7.9 3.3 -9.1

Sept.

0.6 0.6 -0.3 0.8 -1.6 5.2 5.8 5.2 4.3 -4.1

Oct.

0.3 1.3 0.2 0.2 -1.5 0.3 0.6 -1.2 1.4 -3.4

Nov.

1.3 2.4 6.0 0.1 -0.3 7.4 4.0 16.5 2.4 0.6

Dec.

1.4 0.2 2.7 1.2 1.3 2.2 0.5 2.5 4.5 1.5

2021

Jan.

1.7 0.1 2.0 1.8 3.1 3.8 -1.2 5.3 8.9 6.6

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2020. In addition, indexes for September 2020 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Services for intermediate demand: Prices for services for intermediate demand increased 1.3 
percent in January, the largest advance since the index began in December 2009. Over three- quarters 
of the broad-based January rise can be attributed to prices for services less trade, transportation, and 
warehousing for intermediate demand, which moved up 1.5 percent. Margins for trade services for 
intermediate demand increased 1.1 percent, and the index for transportation and warehousing 
services for intermediate demand advanced 0.4 percent. For the 12 months ended in January, prices 
for services for intermediate demand moved up 2.8 percent, the largest rise since climbing 2.8 
percent for the 12 months ended May 2019.

Product detail: About 40 percent of the January rise in the index for services for intermediate 
demand can be traced to prices for administrative and general management consulting services, 
which jumped 22.9 percent. The indexes for portfolio management; metals, minerals, and ores 
wholesaling; guestroom rental; business loans (partial); and truck transportation of freight also 
moved higher. In contrast, prices for gross rents for office buildings fell 2.8 percent. The indexes for 
arrangement of freight and cargo transportation and for chemicals and allied products wholesaling 
also decreased. 

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

Jan.

0.1 0.2 -0.3 0.2 1.7

Feb.

-0.2 -0.4 -0.2 -0.3 1.3

Mar.

0.1 0.5 -1.2 0.2 1.1

Apr.

-1.6 0.0 -1.5 -2.1 -1.2

May

-0.3 0.1 0.8 -0.8 -1.5

June

0.3 1.3 -0.2 0.3 -1.3

July

0.5 0.0 -0.5 0.8 -0.9

Aug.

0.8 2.0 -0.1 0.8 -0.4

Sept.

1.1 1.6 0.9 0.8 0.6

Oct.

0.6 0.7 1.3 0.4 1.6

Nov.

-0.1 0.3 -0.5 -0.1 1.6

Dec.

0.4 0.7 0.0 0.4 1.6

2021

Jan.

1.3 1.1 0.4 1.5 2.8

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2020. In addition, indexes for September 2020 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand advanced 1.4 percent in 
January, the ninth consecutive increase. In January, the index for total services inputs to stage 4 
intermediate demand rose 1.4 percent, and prices for total goods inputs moved up 1.2 percent. (See 
table D.) Advances in the indexes for portfolio management; administrative and general management 
consulting services; metals, minerals, and ores wholesaling; grains; iron and steel; and gasoline 
outweighed decreases in the indexes for gross rents for office buildings, natural gas to electric 
utilities, and chemicals and allied products wholesaling. (See table 6.) For the 12 months ended in 
January, prices for stage 4 intermediate demand climbed 3.4 percent, the largest increase since rising 
3.8 percent for the 12 months ended October 2018.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand rose 1.2 percent in January, 
after advancing 1.6 percent in December. In January, the index for total services inputs to stage 3 
intermediate demand climbed 1.7 percent, and prices for total goods inputs moved up 0.7 percent. 
Increases in the indexes for administrative and general management consulting services; grains; 
diesel fuel; metals, minerals, and ores wholesaling; steel mill products; and industrial chemicals 
outweighed decreases in prices for raw milk, slaughter chickens, and arrangement of freight and 
cargo transportation. For the 12 months ended in January, the index for stage 3 intermediate demand 
rose 1.1 percent, the largest advance since rising 2.4 percent for the 12 months ended April 2019.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 2.7 percent in 
January, the ninth consecutive advance. In January, prices for total goods inputs to stage 2 
intermediate demand rose 4.8 percent, and the index for total services inputs moved up 1.1 percent. 
Increasing prices for crude petroleum, industrial chemicals, administrative and general management 
consulting services, iron and steel scrap, oilseeds, and liquefied petroleum gas outweighed decreases 
in the indexes for arrangement of freight and cargo transportation, television advertising time sales, 
and natural gas. For the 12 months ended in January, prices for stage 2 intermediate demand moved 
up 4.4 percent. 

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved up 1.7 percent in 
January, after rising 2.4 percent in December. In January, the index for total goods inputs to stage 1 
intermediate demand increased 2.3 percent, and prices for total services inputs climbed 1.4 percent. 
Advances in the indexes for iron and steel; industrial chemicals; grains; diesel fuel; metals, minerals, 
and ores wholesaling; and guestroom rental outweighed decreases in the indexes for natural gas to 
electric utilities, gross rents for office buildings, and chemicals and allied products wholesaling. For 
the 12 months ended in January, prices for stage 1 intermediate demand moved up 3.8 percent, the 
largest increase since rising 4.8 percent for the 12 months ended November 2018.  

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

Jan.

0.1 -0.1 0.3 -0.2 -0.3 0.1 -0.7 -1.7 0.0 0.2 0.4 -0.2

Feb.

-0.4 -0.4 -0.5 -1.1 -2.1 -0.2 -2.0 -4.6 -0.2 -1.2 -1.9 -0.3

Mar.

-0.3 -0.6 0.0 -1.8 -3.9 0.2 -2.8 -7.2 0.2 -1.4 -2.7 -0.1

Apr.

-1.6 -1.7 -1.6 -5.2 -9.7 -1.1 -4.4 -8.9 -1.7 -4.3 -6.6 -1.7

May

0.1 0.5 -0.2 0.8 2.0 -0.3 1.5 3.7 0.3 -0.8 -0.9 -0.7

June

0.5 0.5 0.7 1.7 3.7 0.1 1.8 4.7 0.2 1.8 3.1 0.5

July

0.8 0.8 0.7 1.1 2.1 0.2 0.8 1.1 0.7 1.5 2.8 -0.1

Aug.

0.8 0.4 1.1 0.9 1.1 0.8 1.5 3.2 0.5 1.3 1.8 0.7

Sept.

0.8 0.5 1.1 0.9 0.9 0.8 1.8 3.1 0.8 1.3 1.3 1.2

Oct.

0.3 0.4 0.2 0.1 -0.3 0.7 0.5 0.6 0.6 0.7 1.0 0.3

Nov.

0.3 0.4 0.2 1.0 1.7 0.2 2.0 5.7 -0.4 0.9 1.9 -0.2

Dec.

0.7 0.8 0.6 1.6 3.1 0.3 1.2 2.5 0.4 2.4 4.0 0.4

2021

Jan.

1.4 1.2 1.4 1.2 0.7 1.7 2.7 4.8 1.1 1.7 2.3 1.4

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2020. In addition, indexes for September 2020 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

________________
The Producer Price Index for February 2021 is scheduled to be released on Friday, March 
12, 2021 at 8:30 a.m. (ET).

                                           *****

         PPI Updates Commodity Weight Allocations for the Final Demand-Intermediate Demand 
                                    Aggregation Structure

Effective with this release, the Bureau of Labor Statistics has updated the weight allocations used 
to calculate the Producer Price Index (PPI) Final Demand-Intermediate Demand (FD-ID) indexes 
to more accurately reflect recent sales patterns. While PPI commodity index weights continue to 
be based on shipment values from the 2012 economic census, the proportions of these weights 
allocated to the various FD-ID categories have changed. The new allocations are based primarily 
on data from the 2012 Input-Output Accounts produced by the Bureau of Economic Analysis.

It is important to note that the allocation update did not change the PPI commodity classification 
system, reference base, the FD-ID aggregation structure, or historical index data. It has, however, 
resulted in substantial shifts in the relative importance figures of certain commodity components 
that make up the FD-ID indexes.

Relative importance figure tables for December 2020, which reflect the shift from 2007 to 2012 
input-output relationships, are available on the BLS website at www.bls.gov/ppi. A detailed 
analysis of the PPI weight allocation update also is being posted to the PPI homepage. This 
information also may be requested from the PPI Section of Index Analysis and Public 
Information through e-mail to ppi-info@bls.gov or by calling (202) 691-7705. For more 
information about this update, contact Jonathan Weinhagen at weinhagen.jonathan@bls.gov or 
(202) 691-7709.


                                           *****

                         Recalculation of Seasonal Adjustment Factors

Effective with this release, seasonal adjustment factors have been recalculated to reflect price-
movement patterns during 2020 for the Final Demand-Intermediate Demand (FD-ID) system and 
commodity-grouping indexes. This routine annual recalculation may affect previously published 
seasonally adjusted indexes and percent changes for January 2016 through December 2020. 

Revised seasonally adjusted data for this period, as well as seasonal adjustment factors for 
directly adjusted commodity indexes to be used through December 2021, were released February 
12, 2021. To obtain this information, contact the Producer Price Index Section of Index Analysis 
and Public Information at ppi-info@bls.gov or (202) 691-7705, or visit the Producer Price Index 
homepage at www.bls.gov/ppi.

Tables E and F below provide monthly seasonally adjusted percent changes for major FD-ID 
system indexes in 2020, based on former and recalculated seasonal factors. These percent 
changes include final price data through August 2020 and may differ from values shown in 
tables A through D of this release, which include final price data through September 2020.


Table E.  Over-the-month percent changes in major final demand indexes, seasonally adjusted, 
using former and recalculated seasonal factors for 2020

               Final           Final demand       Final demand    Final demand less foods,
               demand             goods             services     energy, and trade services
Month      Former  Recalc.    Former  Recalc.    Former  Recalc.      Former   Recalc.
January      0.3     0.3        0.3     0.3        0.3     0.4          0.3      0.4
February     -.5     -.5        -.9     -.7        -.3     -.5           -.1     -.2
March        -.4     -.5       -1.5    -1.7         .1      .2           -.2     -.2
April       -1.3    -1.1       -3.0    -2.8        -.4     -.4           -.8     -.8
May           .5      .4        1.5     1.4         .1      .1            .2      .1
June          .3      .3         .4      .4         .2      .2            .2      .3
July          .6      .5         .7      .5         .5      .5            .4      .4
August        .2      .2         .3      .4         .1      .2            .2      .2
September     .4      .4         .4      .4         .5      .4            .4      .4
October       .3      .3         .5      .5         .2      .2            .2      .1
November      .1      .1         .4      .3         .0     -.2            .1      .2
December      .3      .3        1.1     1.0        -.1     -.1            .4      .4


Table F.  Over-the-month percent changes in major intermediate demand indexes, seasonally adjusted, 
using former and recalculated seasonal factors for 2020

            Processed goods for       Unprocessed goods for          Services for
            intermediate demand        intermediate demand        intermediate demand
Month      Former   Recalculated      Former   Recalculated      Former   Recalculated
January     -0.2       -0.2            -1.1       -1.3             0.2        0.1          
February     -.9        -.7            -6.7       -6.5             -.2        -.2          
March       -1.5       -1.6            -8.5       -8.1              .1         .1          
April       -3.6       -3.5           -14.1      -13.7            -1.7       -1.6          
May           .0         .0             8.6        8.4             -.3        -.3          
June         1.3        1.2             5.1        5.4              .3         .3          
July         1.4        1.4             1.0         .6              .4         .5          
August        .9         .9             3.9        4.0              .9         .8          
September     .7         .7             4.0        3.8              .8         .8          
October       .3         .3             2.6        1.6              .8         .8          
November     1.4        1.3             7.3        7.4             -.1        -.1          
December     1.5        1.4             2.2        2.2              .4         .4          

The PDF version of the news release

News release charts

Supplemental Files Table of Contents

Table of Contents

Last Modified Date: February 17, 2021