PPI final demand index up 2.7 percent for the 12 months ended in January 2018

February 21, 2018

For the 12 months ended in January 2018, the Producer Price Index for final demand rose 2.7 percent, not seasonally adjusted. Prices for final demand goods increased 3.3 percent, while prices for final demand services increased 2.3 percent over the year.

12-month percentage change and relative importance for Producer Price Index for final demand groupings, not seasonally adjusted, January 2018
Grouping 12-month change, January 2017 to January 2018 Relative importance weight, December 2017

Final demand

2.7% 100.000%

Final demand goods

3.3 33.013

Final demand foods

1.8 5.723

Final demand energy

9.2 5.576

Final demand goods less foods and energy

2.1 21.714

Final demand services

2.3 65.345

Final demand trade services

1.7 20.351

Final demand transportation and warehousing services

2.5 4.465

Final demand services less trade, transportation, and warehousing

2.5 40.529

Final demand construction

3.4 1.642

Construction for private capital investment

3.4 1.107

Construction for government

3.6 0.535

Note: All indexes are subject to revision 4 months after original publication.

Final demand goods account for 33.0 percent of the total producer price index. Within final demand goods, prices for foods, which account for 5.7 percent of the total, increased 1.8 percent. Energy, which has a relative importance weight of 5.6 percent, increased 9.2 percent over the year. Prices for final demand goods less foods and energy, which accounts for the remaining 21.7 percent, increased 2.1 percent.

Final demand services make up 65.3 percent of the total producer price index. Within final demand services, the final demand trade services index, which account for 20.4 percent of the total, increased 1.7 percent. Prices for final demand transportation and warehousing services increased 2.5 percent. Prices for final demand services less trade, transportation, and warehousing, which has a relative importance weight of 40.5 percent, increased 2.5 percent over the year.

Final demand construction, with a relative importance weight of 1.6 percent, increased 3.4 percent over the January 2017–January 2018 period.

These data are from the Producer Price Indexes program and are not seasonally adjusted. To learn more, see "Producer Price Indexes — January 2018" (HTML) (PDF). Producer price indexes measure prices that U.S. producers receive for goods, services, and construction. All producer prices are subject to revision once, 4 months after original publication. Also see Charts related to the latest "U.S. Producer Price Indexes" news release.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, PPI final demand index up 2.7 percent for the 12 months ended in January 2018 on the Internet at https://www.bls.gov/opub/ted/2018/ppi-final-demand-index-up-2-point-7-percent-for-the-12-months-ended-in-january-2018.htm (visited September 15, 2019).

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