Producer Price Index News Release summary

Transmission of material in this release is embargoed until USDL 19-0613
8:30 a.m. (EDT), Thursday, April 11, 2019

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PRODUCER PRICE INDEXES - MARCH 2019

The Producer Price Index for final demand rose 0.6 percent in March, seasonally adjusted, the
U.S. Bureau of Labor Statistics reported today. Final demand prices edged up 0.1 percent in
February and decreased 0.1 percent in January. (See table A.) On an unadjusted basis, the final
demand index increased 2.2 percent for the 12 months ended in March, the largest 12-month rise
since a 2.5-percent advance in December 2018.

In March, over 60 percent of the increase in the index for final demand can be traced to a 1.0-
percent advance in prices for final demand goods. The index for final demand services moved up
0.3 percent.

The index for final demand less foods, energy, and trade services was unchanged in March
following a 0.1-percent advance in February. For the 12 months ended in March, prices for final
demand less foods, energy, and trade services rose 2.0 percent.

Final demand

Final demand goods: The index for final demand goods moved up 1.0 percent in March, the largest
advance since a 1.0-percent rise in May 2015. In March, over 80 percent of the broad-based increase
can be traced to prices for final demand energy, which jumped 5.6 percent. The index for final
demand goods less foods and energy rose 0.2 percent. Prices for final demand foods advanced 0.3
percent.

Product detail: Over 60 percent of the increase in the index for final demand goods is attributable to
a 16.0-percent jump in gasoline prices. The indexes for diesel fuel, fresh and dry vegetables,
cigarettes, beverages and beverage materials, and residential electric power also moved higher. In
contrast, prices for pork declined 8.7 percent. The indexes for light motor trucks and liquefied
petroleum gas also decreased. (See table 4.)

Final demand services: Prices for final demand services rose 0.3 percent in March after no change
in February. The increase is attributable to the index for final demand trade services, which advanced
1.1 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Conversely, prices for final demand transportation and warehousing services declined 0.8 percent.
The index for final demand less trade, transportation, and warehousing was unchanged.

Product detail: Nearly a third of the increase in the index for final demand services can be traced to
margins for apparel, jewelry, footwear, and accessories retailing, which rose 4.2 percent. The indexes
for machinery, equipment, parts, and supplies wholesaling; deposit services (partial); food and
alcohol retailing; health, beauty, and optical goods retailing; and portfolio management also
advanced. In contrast, prices for long-distance motor carrying fell 1.2 percent. The indexes for fuels
and lubricants retailing and for residential real estate loans (partial) 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.)
Month	Total final demand	Final demand less foods, energy, and trade	Total	Foods	Energy	Less foods and energy	Total	Trade	Transportation and warehousing	Other	Change in final demand from 12 months ago (unadj.)
2018
Mar.	0.3	0.3	0.4	1.9	-0.9	0.3	0.3	0.0	0.5	0.3	2.9	2.9
Apr.	0.1	0.2	0.0	-1.1	0.3	0.3	0.2	0.3	0.5	0.1	2.7	2.6
May	0.4	0.3	0.8	0.3	3.1	0.3	0.3	0.5	0.6	0.2	3.1	2.7
June	0.3	0.2	0.1	-1.2	1.1	0.2	0.3	0.5	0.8	0.3	3.3	2.7
July	0.1	0.3	0.1	-0.1	-0.4	0.3	0.1	-0.3	0.5	0.2	3.4	3.0
Aug.	0.0	0.2	0.1	-0.5	0.1	0.2	0.0	-0.3	0.0	0.2	3.0	3.0
Sept.	0.1	0.3	-0.1	-0.1	-0.7	0.1	0.2	-0.3	1.3	0.3	2.7	3.1
Oct.	0.8	0.3	0.8	0.9	2.7	0.3	0.8	1.7	0.7	0.3	3.1	3.0
Nov.(1)	-0.1	0.2	-0.5	1.0	-4.1	0.2	0.1	0.1	0.5	0.1	2.6	2.9
Dec.(1)	-0.2	-0.1	-0.5	2.6	-5.5	-0.1	0.0	0.1	-0.2	0.0	2.5	2.8
2019
Jan.	-0.1	0.2	-0.8	-1.7	-3.8	0.3	0.3	0.8	0.5	0.0	2.0	2.5
Feb.	0.1	0.1	0.4	-0.3	1.8	0.1	0.0	-0.4	-1.3	0.3	1.9	2.3
Mar.	0.6	0.0	1.0	0.3	5.6	0.2	0.3	1.1	-0.8	0.0	2.2	2.0
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2018 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in March, prices for processed goods rose 0.8 percent, the index for
unprocessed goods advanced 2.3 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 climbed 0.8 percent in March following a 0.4-percent rise in February. The March increase
was the result of a 4.3-percent advance in prices for processed energy goods. Conversely, the index
for processed foods and feeds fell 0.3 percent. Prices for processed materials less foods and energy
were unchanged. For the 12 months ended in March, the index for processed goods for intermediate
demand climbed 1.3 percent.

Product detail: In March, nearly 60 percent of the rise in the index for processed goods for
intermediate demand is attributable to a 12.6-percent jump in diesel fuel prices. The indexes for
gasoline, jet fuel, primary basic organic chemicals, residual fuels, and natural cheese (except cottage
cheese) also moved higher. In contrast, prices for pork fell 8.7 percent. The indexes for natural gas to
electric utilities and for plastic resins and materials also declined. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate
demand advanced 2.3 percent following two consecutive decreases. Most of the increase can be
traced to a 7.3-percent rise in prices for unprocessed energy materials. The index for unprocessed
nonfood materials less energy moved up 1.2 percent. Conversely, prices for unprocessed foodstuffs
and feedstuffs fell 2.3 percent. For the 12 months ended in March, the index for unprocessed goods
for intermediate demand declined 3.5 percent.

Product detail: Leading the March increase in the index for unprocessed goods for intermediate
demand, prices for crude petroleum jumped 15.3 percent. The indexes for raw milk, carbon steel
scrap, natural gas, fresh and dry vegetables, and unprocessed finfish also moved higher. In contrast,
prices for slaughter poultry fell 7.6 percent. The indexes for hay, hayseeds, and oilseeds and
corrugated wastepaper 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
Month	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.)
2018
Mar.	0.1	0.8	-2.0	0.5	4.8	-3.4	0.2	-9.2	1.1	5.3
Apr.	0.5	0.3	1.0	0.3	4.8	1.0	-2.1	4.1	0.5	4.2
May	1.1	-0.1	3.1	0.8	6.2	2.3	0.7	5.1	-0.3	7.4
June	0.4	-1.3	1.2	0.5	6.6	-1.0	-1.0	-1.8	0.6	6.5
July	0.1	-1.0	-0.4	0.3	6.7	0.9	-2.5	5.2	-1.9	6.7
Aug.	0.2	-0.6	0.0	0.3	6.4	-3.7	-3.5	-4.4	-2.6	3.7
Sept.	0.2	-0.4	-0.1	0.4	6.0	0.9	0.8	2.0	-1.0	4.3
Oct.	0.7	0.5	3.0	0.1	6.1	3.3	4.3	3.7	0.8	7.6
Nov.(1)	-0.6	0.2	-2.3	-0.3	4.5	-3.3	-0.3	-7.2	0.8	1.3
Dec.(1)	-1.1	0.5	-3.2	-0.6	3.0	8.9	1.3	20.1	1.6	9.1
2019
Jan.	-1.4	0.5	-6.5	-0.3	0.9	-9.3	-0.5	-19.0	-1.9	-3.1
Feb.	0.4	-0.1	1.6	0.1	0.6	-4.6	-1.0	-10.7	-0.7	-8.8
Mar.	0.8	-0.3	4.3	0.0	1.3	2.3	-2.3	7.3	1.2	-3.5
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 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 climbed 0.4 
percent in March, the largest increase since advancing 0.6 percent in October 2018. Nearly two-thirds 
of the March rise can be traced to prices for services less trade, transportation, and warehousing for 
intermediate demand, which moved up 0.3 percent. Margins for trade services for intermediate 
demand increased 0.8 percent. Conversely, the index for transportation and warehousing services for 
intermediate demand declined 0.2 percent. For the 12 months ended in March, prices for services for 
intermediate demand advanced 2.6 percent.

Product detail: About 30 percent of the rise in prices for services for intermediate demand is 
attributable to the index for staffing services, which climbed 1.8 percent. The indexes for deposit 
services (partial); portfolio management; machinery and equipment parts and supplies wholesaling; 
cable network advertising time sales; and courier, messenger, and U.S. postal services also moved 
higher. In contrast, prices for long-distance motor carrying fell 1.2 percent. The indexes for loan 
services (partial) and metals, minerals, and ores 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
Month	Total	Trade	Transportation and warehousing	Other	Total, change from 12 months ago (unadj.)
2018
Mar.	0.3	0.3	0.3	0.3	3.2
Apr.	0.3	0.8	0.3	0.1	3.0
May	0.3	0.4	0.4	0.2	3.1
June	0.2	0.4	0.5	0.1	3.0
July	0.4	0.4	0.3	0.4	3.4
Aug.	0.0	-0.7	0.1	0.2	3.0
Sept.	0.3	-0.4	0.6	0.3	3.3
Oct.	0.6	1.9	0.5	0.3	3.3
Nov.(1)	0.1	0.0	0.2	0.1	3.1
Dec.(1)	0.1	-0.2	0.0	0.2	3.1
2019
Jan.	0.2	0.7	0.2	0.1	2.9
Feb.	-0.1	-0.1	-0.1	0.0	2.6
Mar.	0.4	0.8	-0.2	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 November 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 increased 0.5 percent in
March, the largest advance since rising 0.6 percent in October 2018. In March, the index for total
goods inputs to stage 4 intermediate demand moved up 0.5 percent, and prices for total services
inputs climbed 0.4 percent. (See table D.) Increases in the indexes for diesel fuel, gasoline,
machinery and equipment parts and supplies wholesaling, portfolio management, staffing services,
and deposit services (partial) outweighed decreasing prices for gross rents for retail properties, pork,
and loan services (partial). (See table 6.) For the 12 months ended in March, the index for stage 4
intermediate demand moved up 2.3 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand advanced 0.8 percent in
March, the largest rise since a 1.4-percent jump in October 2018. In March, the index for total goods
inputs to stage 3 intermediate demand climbed 1.3 percent, and prices for total services inputs moved
up 0.3 percent. Increases in the indexes for gasoline, raw milk, diesel fuel, jet fuel, machinery and
equipment parts and supplies wholesaling, and deposit services (partial) outweighed declines in the
indexes for slaughter poultry; slaughter steers and heifers; and metals, minerals, and ores
wholesaling. For the 12 months ended in March, prices for stage 3 intermediate demand advanced
1.2 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand rose 1.1 percent in
March following two consecutive declines. In March, prices for total goods inputs to stage 2
intermediate demand jumped 2.2 percent, and the index for total services inputs moved up 0.4
percent. Higher prices for crude petroleum, staffing services, natural gas, cable network advertising
time sales, portfolio management, and diesel fuel outweighed falling prices for plastic resins and
materials; hay, hayseeds, and oilseeds; and airline passenger services. For the 12 months ended in
March, the index for stage 2 intermediate demand advanced 0.8 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand climbed 1.1 percent in
March, the largest increase since a 1.1-percent rise in October 2018. In March, the index for total
goods inputs to stage 1 intermediate demand jumped 1.8 percent, and total services inputs moved up
0.2 percent. Advancing prices for diesel fuel, carbon steel scrap, gasoline, crude petroleum, deposit
services (partial), and primary basic organic chemicals outweighed decreases in the indexes for
corrugated wastepaper, corn, and airline passenger services. For the 12 months ended in March,
prices for stage 1 intermediate demand increased 1.0 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
Month	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs
2018
Mar.	0.3	0.5	0.2	-0.1	-0.4	0.2	-1.3	-3.2	0.2	0.1	0.0	0.3
Apr.	0.3	0.3	0.3	0.1	-0.1	0.3	0.9	1.9	0.2	0.5	0.6	0.3
May	0.4	0.7	0.2	1.0	1.8	0.3	1.3	2.8	0.2	0.9	1.1	0.6
June	0.3	0.4	0.3	0.3	0.5	0.2	-0.1	-0.3	0.1	0.4	0.7	0.3
July	0.3	0.0	0.4	0.1	-0.3	0.4	0.8	1.7	0.3	0.3	-0.1	0.6
Aug.	0.0	0.0	-0.1	-0.4	-0.8	0.0	-0.5	-1.1	0.0	-0.3	-0.3	-0.2
Sept.	0.2	0.2	0.3	0.3	0.6	0.1	0.6	0.9	0.4	0.2	0.1	0.2
Oct.	0.6	0.5	0.7	1.4	2.3	0.6	0.6	1.3	0.1	1.1	1.4	0.7
Nov.(1)	-0.2	-0.3	-0.1	-0.8	-1.6	0.2	-1.5	-3.4	0.1	-0.4	-0.8	0.1
Dec.(1)	0.0	-0.3	0.3	-1.4	-3.0	0.3	2.9	6.8	-0.1	-0.8	-1.5	0.2
2019
Jan.	-0.2	-0.4	0.2	-0.5	-1.4	0.3	-3.8	-8.6	0.1	-2.0	-3.7	0.2
Feb.	0.2	0.3	0.0	0.2	0.6	-0.1	-1.6	-3.9	0.2	0.1	0.3	-0.2
Mar.	0.5	0.5	0.4	0.8	1.3	0.3	1.1	2.2	0.4	1.1	1.8	0.2
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2018 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for April 2019 is scheduled to be released on Thursday, May 9, 
2019 at 8:30 a.m. (EDT).

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