Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 17-0592 
8:30 a.m. (EDT), Thursday, May 11, 2017

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                                   PRODUCER PRICE INDEXES - APRIL 2017


The Producer Price Index for final demand advanced 0.5 percent in April, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices edged down 0.1 percent 
in March and climbed 0.3 percent in February. (See table A.) On an unadjusted basis, the final 
demand index rose 2.5 percent for the 12 months ended April 2017, the largest increase since 
moving up 2.8 percent for the 12 months ended February 2012.

In April, almost two-thirds of the advance in the final demand index is attributable to prices for 
final demand services, which moved up 0.4 percent. The index for final demand goods climbed 
0.5 percent.

Prices for final demand less foods, energy, and trade services increased 0.7 percent in April. For 
the 12 months ended in April, the index for final demand less foods, energy, and trade services 
climbed 2.1 percent.

Final Demand

Final demand services: The index for final demand services moved up 0.4 percent in April after 
edging down 0.1 percent in March. Most of the increase can be traced to prices for final demand 
services less trade, transportation, and warehousing, which advanced 0.8 percent. The index for final 
demand transportation and warehousing services increased 0.7 percent. Conversely, margins for final 
demand trade services moved down 0.3 percent. (Trade indexes measure changes in margins received 
by wholesalers and retailers.)

Product detail: Over a quarter of the April advance in the index for final demand services is 
attributable to prices for securities brokerage, dealing, investment advice, and related services, which 
increased 6.6 percent. The indexes for guestroom rental; loan services (partial); machinery, 
equipment, parts, and supplies wholesaling; portfolio management; and airline passenger services 
also moved higher. In contrast, margins for fuels and lubricants retailing dropped 14.6 percent. The 
indexes for food and alcohol retailing and for deposit services (partial) also fell. (See table 4.)

Final demand goods: Prices for final demand goods increased 0.5 percent in April following a 0.1-
percent decline in March. Nearly 40 percent of the broad-based advance can be attributed to the 
index for final demand goods less foods and energy, which rose 0.3 percent. The indexes for final 
demand foods and final demand energy climbed 0.9 percent and 0.8 percent, respectively.

Product detail: In April, the index for cigarettes moved up 2.2 percent. Prices for gasoline, fresh and 
dry vegetables, fresh fruits and melons, residential natural gas, and pharmaceutical preparations also 
advanced. Conversely, the index for jet fuel fell 6.1 percent. Prices for carbon steel scrap and 
oilseeds 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.)
Total Foods Energy Less
foods
and
energy
Total Trade Transportation
and
warehousing
Other

2016

Apr.

0.3 0.3 0.4 -0.4 1.8 0.3 0.2 0.2 -0.1 0.3 0.2 1.0

May

0.2 -0.1 0.7 0.4 2.9 0.2 0.0 0.2 -0.5 -0.1 0.0 1.0

June

0.5 0.2 0.7 0.4 2.7 0.2 0.4 0.7 0.1 0.2 0.2 1.0

July

-0.1 0.2 -0.2 -0.7 -0.3 0.0 0.0 -0.8 0.4 0.4 0.0 1.0

Aug.

-0.2 0.1 -0.3 -1.1 -0.9 0.2 -0.2 -0.7 -0.3 0.1 0.0 1.2

Sept.

0.3 0.1 0.5 0.5 1.5 0.1 0.3 0.7 -0.7 0.2 0.6 1.3

Oct.

0.3 0.1 0.3 -0.8 2.7 0.0 0.1 0.4 0.8 0.0 1.1 1.5

Nov.

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

Dec.(1)

0.2 0.3 0.6 0.8 1.9 0.3 0.0 -0.4 1.1 0.1 1.7 1.8

2017

Jan.(1)

0.5 0.0 1.0 0.5 4.3 0.4 0.2 0.9 0.1 -0.2 1.6 1.6

Feb.

0.3 0.3 0.3 0.3 0.6 0.1 0.4 0.4 0.3 0.5 2.2 1.8

Mar.

-0.1 0.1 -0.1 0.9 -2.9 0.4 -0.1 -0.1 -0.2 -0.1 2.3 1.7

Apr.

0.5 0.7 0.5 0.9 0.8 0.3 0.4 -0.3 0.7 0.8 2.5 2.1

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

Intermediate Demand by Commodity Type

Within intermediate demand in April, prices for processed goods increased 0.5 percent, the index for 
unprocessed goods rose 3.3 percent, and prices for services climbed 0.9 percent. (See tables B and 
C.) 

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand advanced 0.5 percent in April, the eighth consecutive increase. About two-thirds of the April 
rise is attributable to prices for processed materials less foods and energy, which also moved up 0.5 
percent. Additionally, the index for processed energy goods climbed 1.3 percent. In contrast, prices 
for processed foods and feeds declined 0.6 percent. For the 12 months ended in April, the index for 
processed goods for intermediate demand rose 5.4 percent, the largest advance since increasing 5.7 
percent for the 12 months ended December 2011.

Product detail: In April, the index for plastic resins and materials climbed 1.8 percent. Prices for 
utility natural gas, gasoline, paperboard, steel pipe and tube, and softwood lumber also moved higher. 
Conversely, the index for prepared animal feeds fell 1.3 percent. Prices for primary basic organic 
chemicals and jet fuel also decreased. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand rose 3.3 percent in April following a 4.2-percent drop in March. The increase can be traced 
to prices for unprocessed energy materials, which jumped 14.1 percent. In contrast, the indexes for 
unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy declined 
2.3 percent and 0.7 percent, respectively. For the 12 months ended in April, prices for unprocessed 
goods for intermediate demand climbed 13.9 percent.

Product detail: About 70 percent of the April advance in the index for unprocessed goods for 
intermediate demand is attributable to a 15.7-percent rise in crude petroleum prices. The indexes for 
natural gas, fresh fruits and melons, fresh vegetables (except potatoes), coal, and gold ores also 
moved higher. Conversely, prices for slaughter barrows and gilts fell 12.7 percent. The indexes for 
oilseeds and carbon steel scrap also decreased.

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.)

2016

Apr.

0.4 -0.4 1.4 0.3 -4.6 2.2 -2.1 8.3 3.6 -13.0

May

0.8 1.0 2.9 0.3 -4.5 2.9 -0.4 7.6 3.4 -12.8

June

0.8 1.3 3.5 0.2 -4.1 2.5 1.3 6.4 -0.2 -10.8

July

0.2 -0.4 0.6 0.1 -3.7 0.8 -2.1 5.6 0.6 -7.6

Aug.

-0.1 -1.1 -1.3 0.3 -3.0 -2.1 -2.1 -4.0 0.3 -6.5

Sept.

0.3 -0.3 1.7 0.1 -1.3 -0.6 -2.1 2.7 -2.0 -4.9

Oct.

0.3 -0.9 1.5 0.2 -0.6 -0.7 -5.9 5.8 -1.3 -4.4

Nov.

0.2 -0.3 -0.1 0.4 0.1 0.6 5.2 -5.8 2.5 1.0

Dec.(1)

0.6 1.3 1.3 0.4 1.8 7.3 4.8 13.4 3.4 13.0

2017

Jan.(1)

1.1 0.6 5.2 0.2 3.8 4.0 1.0 8.9 3.1 17.6

Feb.

0.4 -0.1 0.6 0.5 5.0 -0.2 2.2 -4.3 1.4 19.4

Mar.

0.1 0.6 -2.7 0.7 5.3 -4.2 0.8 -14.6 2.0 12.7

Apr.

0.5 -0.6 1.3 0.5 5.4 3.3 -2.3 14.1 -0.7 13.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 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 moved up 0.9 
percent in April, the largest increase since a 1.3-percent jump in January 2016. Eighty percent of the 
broad-based April advance can be traced to a 1.0-percent rise in prices for services less trade, 
transportation, and warehousing for intermediate demand. The indexes for trade services for 
intermediate demand and for transportation and warehousing services for intermediate demand also 
increased 0.7 percent and 0.4 percent, respectively. For the 12 months ended in April, prices for 
services for intermediate demand climbed 2.6 percent.

Product detail: A major factor in the April increase in prices for services for intermediate demand 
was the index for loan services (partial), which rose 4.5 percent. The indexes for securities, 
brokerage, dealing, investment advice, and related services; portfolio management; machinery and 
equipment parts and supplies wholesaling; chemicals and allied products wholesaling; and airline 
passenger services also moved higher. In contrast, margins for hardware, building materials, and 
supplies retailing declined 3.4 percent. The indexes for fuels and lubricants retailing and for deposit 
services (partial) also fell.

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.)

2016

Apr.

0.0 -0.1 -0.4 0.1 1.1

May

-0.1 0.3 -0.1 -0.3 1.1

June

0.4 1.1 0.2 0.4 1.4

July

0.4 0.2 0.3 0.5 1.7

Aug.

-0.2 -1.6 0.0 0.2 1.3

Sept.

-0.1 -0.3 -0.7 0.1 1.8

Oct.

0.1 -0.2 0.3 0.0 2.4

Nov.

0.4 0.0 0.3 0.6 2.6

Dec.(1)

0.2 1.1 0.7 -0.2 2.6

2017

Jan.(1)

0.2 -0.1 -0.1 0.4 1.5

Feb.

0.5 0.6 0.6 0.5 2.0

Mar.

-0.2 0.3 0.3 -0.4 1.7

Apr.

0.9 0.7 0.4 1.0 2.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 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 advanced 0.6 percent in 
April, the largest increase since a 0.6-percent jump in September 2012. In April, prices for total 
services inputs to stage 4 intermediate demand rose 0.9 percent, and prices for total goods inputs 
moved up 0.3 percent. (See table D.) Advances in the indexes for securities brokerage, dealing, 
investment advice, and related services; loan services (partial); portfolio management; machinery and 
equipment parts and supplies wholesaling; fresh fruits and melons; and chemicals and allied products 
wholesaling outweighed decreases in the indexes for hardware, building materials, and supplies 
retailing; fabricated structural metal; and unprocessed finfish. (See table 6.) For the 12 months ended 
in April, prices for stage 4 intermediate demand climbed 3.0 percent, the largest increase since a 3.3-
percent rise in the 12 months ended January 2012.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand edged up 0.1 percent in 
April, the sixth consecutive advance. In April, the index for total services inputs to stage 3 
intermediate demand rose 0.9 percent. Conversely, prices for total goods inputs moved down 0.6 
percent. Increases in the indexes for securities brokerage, dealing, investment advice, and related 
services; gasoline; loan services (partial); machinery and equipment parts and supplies wholesaling; 
and chemicals and allied products wholesaling outweighed declines in the indexes for slaughter 
barrows and gilts, raw milk, jet fuel, and fuels and lubricants retailing. For the 12 months ended in 
April, the index for stage 3 intermediate demand climbed 4.4 percent, the largest advance since a 5.4-
percent jump in the 12 months ended December 2011.

Stage 2 intermediate demand: The index for stage 2 intermediate demand rose 2.2 percent in April, 
the largest advance since a 3.6-perent increase in February 2014. In April, prices for total goods 
inputs to stage 2 intermediate demand jumped 4.1 percent, and the index for total services inputs 
climbed 0.8 percent. Higher prices for crude petroleum; gas fuels; securities brokerage, dealing, 
investment advice, and related services; portfolio management; plastic resins and materials; and 
guestroom rental outweighed declines in the indexes for oilseeds; hardware, building materials, and 
supplies retailing; and prepared animal feeds. For the 12 months ended in April, the index for stage 2 
intermediate demand surged 7.5 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand moved up 0.9 percent in 
April following a 0.1-percent decline in the prior month. In April, prices for total services inputs to 
stage 1 intermediate demand climbed 1.3 percent, and the index for total goods inputs rose 0.4 
percent. Advances in the indexes for securities brokerage, dealing, investment advice, and related 
services; loan services (partial); crude petroleum; gas fuels; guestroom rental; and chemicals and 
allied products wholesaling outweighed declines in the indexes for carbon steel scrap, primary basic 
organic chemicals, and fuels and lubricants retailing. For the 12 months ended in April, the index for 
stage 1 intermediate demand climbed 6.5 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

2016

Apr.

0.2 0.1 0.2 0.0 0.2 -0.1 0.8 2.4 -0.1 0.9 1.3 0.2

May

0.2 0.4 -0.1 0.2 0.4 -0.1 1.2 3.1 0.1 0.9 2.1 -0.5

June

0.5 0.6 0.5 0.8 1.1 0.4 1.1 2.5 0.2 0.9 0.9 0.9

July

0.2 0.1 0.4 0.2 0.1 0.4 0.9 1.2 0.6 0.1 0.0 0.3

Aug.

-0.2 -0.1 -0.3 -0.6 -0.7 -0.4 -0.5 -1.1 -0.1 -0.5 -0.3 -0.7

Sept.

0.1 0.2 -0.1 -0.1 -0.1 -0.1 0.3 0.7 -0.1 0.1 0.2 -0.1

Oct.

0.1 -0.1 0.2 -0.5 -0.8 -0.1 1.0 2.2 0.2 0.0 0.2 -0.3

Nov.

0.2 0.2 0.3 1.1 1.7 0.6 -0.4 -1.5 0.4 0.8 1.0 0.5

Dec.(1)

0.4 0.4 0.3 1.2 2.2 0.2 2.0 4.5 0.3 1.4 2.1 0.4

2017

Jan.(1)

0.5 0.8 0.3 0.8 1.4 0.1 1.3 2.7 0.2 1.2 2.1 0.1

Feb.

0.5 0.3 0.8 0.8 1.1 0.6 0.0 -0.5 0.4 0.6 0.6 0.6

Mar.

-0.1 0.2 -0.2 0.1 0.3 -0.2 -1.9 -4.4 0.0 -0.1 0.3 -0.5

Apr.

0.6 0.3 0.9 0.1 -0.6 0.9 2.2 4.1 0.8 0.9 0.4 1.3

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

________________
The Producer Price Index for May 2017 is scheduled to be released on Tuesday, June 13, 
2017 at 8:30 a.m. (EDT).


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Last Modified Date: May 11, 2017