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Producer prices for final demand up 1.3 percent in January 2021

February 23, 2021

In January 2021, producer prices for final demand increased 1.3 percent for the largest monthly increase since the index began in December 2009. Final demand prices rose 0.3 percent in December 2020 and 0.1 percent in November 2020. Two-thirds of the January advance in prices for final demand can be traced to a 1.3-percent rise in prices for final demand services.

1-month percent change in Producer Price Index for final demand, December 2020–January 2021
Grouping Percent change

Final demand, total

1.3%

Goods

1.4

Foods

0.2

Energy

5.1

Goods less foods and energy

0.8

Services

1.3

Trade services

1.0

Transportation and warehousing services

1.3

Services less trade, transportation, and warehousing

1.4

Construction

0.2

Prices for final demand services rose 1.3 percent in January, the largest monthly advance since the index began in December 2009. Over 70 percent of the January increase is attributable to a 1.4-percent jump in prices for final demand services less trade, transportation, and warehousing. Prices for final demand trade services increased 1.0 percent while prices for final demand transportation and services rose 1.3 percent. 

In January, prices for final demand goods moved up 1.4 percent, the largest monthly increase since a jump of 1.4 percent in May 2020. Nearly 60 percent of the increase in January is attributable to a 5.1-percent rise in prices for final demand energy. Prices for final demand goods less foods and energy (+0.8 percent) and for final demand foods (+0.2 percent) also increased. 

These data are from the Producer Price Indexes program and are seasonally adjusted. To learn more, see "Producer Price Indexes — January 2021." Also see Charts related to the latest "U.S. Producer Price Indexes" news release. Producer price indexes measure prices U.S. producers receive for goods, services, and construction. All producer price data are subject to revision 4 months after initial publication.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Producer prices for final demand up 1.3 percent in January 2021 at https://www.bls.gov/opub/ted/2021/producer-prices-for-final-demand-up-1-3-percent-in-january-2021.htm (visited March 02, 2021).