Producer prices by production flow, September 2014

October 16, 2014

Producer Price Indexes (PPI) measure the average change over time in prices U.S. producers received for goods, services, and construction. PPIs measure price change from the perspective of the seller. This contrasts with the Consumer Price Index (CPI), which measures price change from the buyer's perspective. PPIs measures price change for goods, services, and construction sold to final demand and to intermediate demand. This edition of TED focuses on measures of intermediate demand. The index for Stage 4 intermediate demand measures price changes for products purchased by industries that primarily produce output sold to final demand. This index was unchanged for the second straight month in September.

Monthly percent changes in selected intermediate demand price indexes by production flow, seasonally adjusted, September 2013–September 2014
Month Stage 1 Stage 2 Stage 3 Stage 4

Sep 2013

-0.2 0.3 0.1 0.0

Oct 2013

-0.1 -0.9 0.2 0.2

Nov 2013

0.2 -1.3 0.1 0.0

Dec 2013

0.5 1.4 0.0 0.1

Jan 2014

1.2 0.3 1.1 0.3

Feb 2014

0.0 3.8 0.4 0.2

Mar 2014

-0.3 -2.0 1.0 0.3

Apr 2014

-0.2 -0.4 0.3 0.0

May 2014

-0.3 0.3 -0.4 0.0

Jun 2014 (p)

0.3 0.4 0.2 0.3

Jul 2014 (p)

0.7 -1.7 0.6 0.2

Aug 2014 (p)

-0.2 -1.4 -0.7 0.0

Sep 2014 (p)

0.2 -0.3 0.4 0.0
Footnotes:

(p) Preliminary

Prices for stage 3 intermediate demand, which measures price changes for products purchased by industries that primarily produce output sold to industries classified in stage 4, advanced 0.4 percent in September after declining 0.7 percent in August. For the 12 months ended in September, the index for stage 3 intermediate demand rose 3.2 percent.

The index for stage 2 intermediate demand fell 0.3 percent in September, the third consecutive decrease. For the 12 months ended in September, prices for stage 2 intermediate demand fell 2.0 percent, the largest decrease since a 6.2-percent drop in July 2012.

The index for stage 1 intermediate demand moved up 0.2 percent in September after a 0.2-percent decline in August. For the 12 months ended in September, the index for stage 1 intermediate demand advanced 2.1 percent.

These data are from the BLS Producer Price Indexes program. To learn more, see "Producer Price Indexes — August 2014" (HTML) (PDF), news release USDL‑14‑1940. All producer price indexes are routinely subject to revision once, 4 months after original publication, to reflect the availability of late reports and corrections by respondents.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Producer prices by production flow, September 2014 on the Internet at https://www.bls.gov/opub/ted/2014/ted_20141016.htm (visited September 21, 2019).

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