Producer Price Index for final demand up 2.9 percent for the 12 months ended in October 2018

November 16, 2018

For the 12 months ended in October 2018, the Producer Price Index for final demand rose 2.9 percent, not seasonally adjusted. Prices for final demand goods increased 3.6 percent, while prices for final demand services increased 2.4 percent over the year.

 12-month percentage change for Producer Price Index final demand groupings, not seasonally adjusted, October 2018
Grouping 12-month percent change Relative importance weight, December 2017

Final demand

2.9% 100.000%

Final demand goods

3.6 33.022

Final demand foods

-0.7 5.723

Final demand energy

12.5 5.577

Final demand goods less foods and energy

2.5 21.722

Final demand services

2.4 65.333

Final demand trade services

1.5 20.29

Final demand transportation and warehousing services

5.8 4.485

Final demand services less trade, transportation, and warehousing

2.6 40.558

Final demand construction

4.7 1.644

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, decreased 0.7 percent from October 2017 to October 2018. Energy, which has a relative importance weight of 5.6 percent, increased 12.5 percent over the year. Prices for final demand goods less foods and energy, which accounts for the remaining 21.7 percent, increased 2.5 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 20.3 percent of the total, increased 1.5 percent from October 2017 to October 2018. Prices for final demand transportation and warehousing services increased 5.8 percent. Prices for final demand services less trade, transportation, and warehousing, which has a relative importance weight of 40.6 percent, increased 2.6 percent over the year.

From October 2017 to October 2018, final demand construction, with a relative importance weight of 1.6 percent, increased 4.7 percent.

These data are from the Producer Price Indexes program and are not seasonally adjusted. To learn more, see "Producer Price Indexes — October 2018." 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, Producer Price Index for final demand up 2.9 percent for the 12 months ended in October 2018 on the Internet at https://www.bls.gov/opub/ted/2018/producer-price-index-for-final-demand-up-2-point-9-percent-for-the-12-months-ended-in-october-2018.htm (visited September 15, 2019).

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