Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL-14-1310
8:30 a.m. (EDT), Wednesday, July 16, 2014

Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov                                    
           
                        
                            PRODUCER PRICE INDEXES - JUNE 2014


The Producer Price Index for final demand rose 0.4 percent in June, seasonally adjusted, the U.S. 
Bureau of Labor Statistics reported today. This increase followed a 0.2-percent decline in May 
and a 0.6-percent advance in April. On an unadjusted basis, the index for final demand moved up 
1.9 percent for the 12 months ended in June. (See table A.)

In June, the 0.4-percent increase in final demand prices can be traced to a 0.5-percent advance in 
the index for final demand goods and a 0.3-percent rise in prices for final demand services.

Within intermediate demand, prices for processed goods advanced 0.4 percent, the index for 
unprocessed goods fell 0.9 percent, and prices for services moved up 0.6 percent. (See tables B 
and C.)

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
Month Total
final
demand
Final demand goods Final demand services Change
in final
demand
from 12
months
ago
(unadj.)
Total Foods Energy Less
foods
and
energy
Total Trade Transportation
and
warehousing
Other

2013

June

0.5 0.3 -0.3 1.5 0.1 0.6 1.0 0.8 0.3 1.7

July

0.3 0.1 0.3 -0.1 0.0 0.5 1.0 0.7 0.0 2.0

Aug.

-0.1 0.0 -0.6 0.7 0.0 -0.1 -0.6 0.1 0.2 1.7

Sept.

0.1 -0.1 -0.7 0.2 0.0 0.2 0.4 -0.1 0.1 1.1

Oct.

0.3 0.1 0.3 0.0 0.0 0.3 0.2 0.3 0.3 1.3

Nov.

0.0 -0.1 -0.2 -0.6 0.1 0.0 0.2 -0.5 0.1 1.1

Dec.

0.0 0.4 -0.2 1.2 0.4 -0.2 -1.0 1.6 0.1 1.2

2014

Jan.

0.3 0.5 0.7 0.6 0.5 0.1 0.0 -0.9 0.2 1.3

Feb.(1)

0.2 0.2 0.7 -0.3 0.2 0.3 0.6 -0.4 0.1 1.2

Mar.(1)

0.1 0.0 1.0 -0.6 -0.1 0.1 0.1 0.3 0.2 1.4

Apr.

0.6 0.6 2.7 0.1 0.3 0.6 1.4 0.8 0.3 2.1

May

-0.2 -0.2 -0.2 -0.2 0.0 -0.2 -0.5 0.9 -0.1 2.0

June

0.4 0.5 -0.2 2.1 0.1 0.3 0.2 0.3 0.3 1.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2014 have been revised to reflect the availability of late reports and corrections by respondents.

Final Demand

(Final demand includes goods, services, and construction which are sold for personal 
consumption, capital investment, government purchases, and export. See table 4 for product 
detail.)

Final demand goods:  The index for final demand goods increased 0.5 percent in June 
compared with a 0.2-percent decrease in May. Nearly 90 percent of the advance can be traced to 
prices for final demand energy, which climbed 2.1 percent in June. The index for final demand 
goods less foods and energy edged up 0.1 percent. In contrast, the index for final demand foods 
declined 0.2 percent. 

Product detail:  In June, a 6.4-percent advance in gasoline prices accounted for most of the 
increase in the final demand goods index. Prices for residential electric power, pharmaceutical 
preparations, meats, fresh and dry vegetables, and soft-cake bakery products also rose. 
Conversely, the index for grains dropped 12.5 percent in June. Prices for residential natural gas 
and light motor trucks also declined. (See table 4.)

Final demand services:  Prices for final demand services increased 0.3 percent in June subsequent 
to a 0.2-percent decline a month earlier. Nearly two-thirds of the broad-based advance is attributable 
to the index for final demand services less trade, transportation, and warehousing, which moved up 
0.3 percent. Prices for final demand trade services rose 0.2 percent. (Trade indexes measure changes 
in margins received by wholesalers and retailers.) The index for final demand transportation and 
warehousing services increased 0.3 percent. 

Product detail:  In June, a 5.9-percent jump in the index for services related to securities brokerage 
and dealing led the advance in prices for final demand services. The indexes for traveler 
accommodation services, deposit services (partial), food and alcohol wholesaling, chemical and 
allied products wholesaling, and airline passenger services also moved higher. In contrast, margins 
for machinery and equipment wholesaling declined 0.4 percent in June. The indexes for health, 
beauty, and optical goods retailing and for residential real estate loans (partial) also decreased.

Special grouping, Final demand less foods, energy, and trade:  Prices for final demand less foods, 
energy, and trade services rose 0.2 percent in June compared with no change in May and a 0.3-
percent advance in April. (The index for final demand less foods, energy, and trade services 
represents about two-thirds of final demand.)

Special grouping, Finished goods:  Prices for finished goods increased 0.7 percent in June after 
edging down 0.1 percent in the prior month. (The finished goods index represents about two-thirds of 
final demand goods, through the exclusion of the weight for government purchases and exports. The 
finished goods index represents about one-quarter of overall final demand.) Nearly three-quarters of 
this broad-based advance can be traced to prices for finished consumer energy goods, which jumped 
2.3 percent. The indexes for finished goods less foods and energy and for finished consumer foods 
moved up 0.2 percent and 0.4 percent, respectively. Within finished goods, rising prices for gasoline, 
residential electric power, pharmaceutical preparations, meats, fresh and dry vegetables, and soft-
cake bakery products outweighed falling prices for residential natural gas; natural, processed, and 
imitation cheese; and light motor trucks.

Intermediate Demand
(Intermediate demand includes goods, services, and maintenance and repair construction sold to 
businesses, excluding capital investment. BLS publishes two parallel treatments of intermediate 
demand, each constructed from the identical set of commodity price indexes. The first treatment 
organizes commodities according to commodity type, and the second organizes commodities using a 
stage-based, production flow model. See the technical note for more information.)

Intermediate Demand by Commodity Type

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved up 0.4 percent in June following a 0.1-percent decrease in May. In June, prices for 
processed energy goods rose 1.3 percent, and the index for processed materials less foods and energy 
inched up 0.1 percent. Conversely, prices for processed foods and feeds edged down 0.1 percent. For 
the 12 months ended in June, prices for processed goods for intermediate demand advanced 1.5 
percent. (See table B.)

Product detail:  In June, a 1.0-percent increase in commercial electric power prices was a major 
factor in the rise in the index for processed goods for intermediate demand. The indexes for gasoline, 
meats, basic organic chemicals, cold rolled steel sheet and strip, and natural gas to electric utilities 
also advanced. In contrast, prices for natural, processed, and imitation cheese moved down 4.8 
percent in June. The indexes for plastic resins and materials and for industrial electric power also 
declined. (See table 5.)

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.)

2013

June

0.3 0.1 1.0 0.0 0.8 -0.6 -1.3 0.0 -0.8 10.7

July

0.0 1.6 0.3 -0.2 1.3 0.2 -0.7 0.9 -0.1 8.5

Aug.

0.0 -2.3 0.6 0.2 0.4 -1.4 -3.4 -0.5 0.0 1.9

Sept.

0.1 0.5 0.3 -0.1 -0.6 -0.1 -0.7 1.0 -1.2 0.5

Oct.

-0.1 -1.8 0.0 0.1 -0.8 -0.5 1.1 -1.8 -0.6 -0.5

Nov.

-0.3 -0.9 -0.9 -0.1 -0.4 -1.7 -0.6 -4.0 1.0 -3.0

Dec.

0.4 0.7 1.2 0.1 0.1 2.2 -0.6 5.3 1.1 -1.9

2014

Jan.

0.7 1.2 1.5 0.4 0.5 0.9 3.6 -1.7 1.8 -0.5

Feb.(1)

0.3 1.0 0.2 0.4 -0.2 5.1 0.6 13.4 -1.2 5.1

Mar.(1)

0.0 1.6 -0.7 -0.1 0.7 0.2 7.3 -6.0 0.4 5.8

Apr.

0.0 2.6 -1.2 0.2 1.5 0.4 3.6 -3.3 0.9 6.5

May

-0.1 -0.2 0.3 -0.2 1.3 0.0 -2.3 2.7 -0.7 4.4

June

0.4 -0.1 1.3 0.1 1.5 -0.9 -3.0 1.2 -1.1 3.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2014 have been revised to reflect the availability of late reports and corrections by respondents.

Unprocessed goods for intermediate demand:  The index for unprocessed goods for 
intermediate demand fell 0.9 percent in June, the largest decline since a 1.7-percent drop in 
November 2013. The June decrease was led by prices for unprocessed foodstuffs and feedstuffs, 
which moved down 3.0 percent. The index for unprocessed nonfood materials less energy fell 
1.1 percent. Conversely, prices for unprocessed energy materials increased 1.2 percent. For the 
12 months ended in June, the index for unprocessed goods for intermediate demand moved up 
3.9 percent.

Product detail:  In June, prices for grains dropped 12.5 percent. The indexes for raw milk, 
natural gas, carbon steel scrap, slaughter poultry, and unprocessed finfish also declined. In 
contrast, prices for crude petroleum rose 3.2 percent. The indexes for slaughter cattle and 
nonferrous scrap also increased.

Services for intermediate demand:  The index for services for intermediate demand climbed 
0.6 percent in June, the largest advance since a 0.7-percent rise in October 2012. Nearly 60 
percent of the June increase can be traced to prices for services less trade, transportation, and 
warehousing for intermediate demand, which moved up 0.5 percent. A 1.3-percent jump in the 
index for trade services for intermediate demand and a 0.3-percent rise in prices for 
transportation and warehousing services for intermediate demand also contributed to the 
advance. For the 12 months ended in June, the index for services for intermediate demand 
increased 1.5 percent. (See table C.) 

Product detail:  In June, a 3.2-percent advance in the index for deposit services (partial) was a 
major factor in the rise in prices for services for intermediate demand. The indexes for services 
related to securities brokerage and dealing, machinery and equipment parts and supplies 
wholesaling, nonresidential real estate services, accounting services (partial), and traveler 
accommodation services also increased. Conversely, prices for passenger car rental fell 1.9 
percent in June. The indexes for services related to air transportation and for automotive fuels 
and lubricants retailing also decreased.

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.)

2013

June

0.4 0.4 0.3 0.3 2.2

July

0.1 0.6 0.4 0.0 1.9

Aug.

0.2 -0.3 0.3 0.3 2.1

Sept.

0.1 0.7 0.2 -0.1 1.8

Oct.

0.2 -0.3 0.3 0.2 1.2

Nov.

0.2 0.8 0.0 0.1 0.9

Dec.

-0.2 -0.5 0.5 -0.2 1.0

2014

Jan.

0.3 -0.2 -0.3 0.6 1.1

Feb.(1)

0.2 0.1 0.9 0.0 1.4

Mar.(1)

0.2 0.2 0.0 0.2 1.6

Apr.

0.1 0.0 0.3 0.1 1.2

May

-0.4 -0.7 0.4 -0.5 1.2

June

0.6 1.3 0.3 0.5 1.5

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2014 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand (The stage 4 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to final 
demand.):  The index for stage 4 intermediate demand climbed 0.5 percent in June, the largest 
advance since a 0.6-percent increase in September 2012. In June, prices for total services inputs 
to stage 4 intermediate demand rose 0.6 percent, and the index for total goods inputs moved up 
0.3 percent. (See table D.) Increases in the indexes for machinery and equipment parts and 
supplies wholesaling, gasoline, services related to securities brokerage and dealing, commercial 
electric power, deposit services (partial), and nonresidential real estate rents outweighed 
decreasing prices for grains; natural, processed, and imitation cheese; and securities brokerage, 
dealing, and investment advice. (See table 6.) For the 12 months ended in June, the index for 
stage 4 intermediate demand rose 1.5 percent.

Stage 3 intermediate demand (The stage 3 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to industries 
classified in stage 4.):  Prices for stage 3 intermediate demand inched up 0.1 percent in June 
after decreasing 0.3 percent in May. In June, the index for total services inputs to stage 3 
intermediate demand rose 0.3 percent, and the index for total goods inputs was unchanged. 
Higher prices for accounting services (partial), gasoline, slaughter cattle, deposit services 
(partial), and cold rolled steel sheet and strip outweighed lower prices for raw milk, grains, 
slaughter poultry, and unprocessed finfish. For the 12 months ended in June, the index for stage 3 
intermediate demand climbed 2.8 percent, the smallest advance since a 1.4-percent increase in 
February 2014.

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

2013

June

0.3 0.2 0.3 0.2 0.0 0.4 0.2 0.1 0.4 0.2 0.3 0.1

July

0.2 0.1 0.2 -0.3 -0.3 -0.2 0.4 0.6 0.2 0.4 0.0 0.6

Aug.

0.1 0.1 0.3 0.1 -0.1 0.3 -0.4 -0.9 0.2 0.3 0.4 0.4

Sept.

0.0 0.0 0.0 0.1 0.1 0.1 0.3 0.3 0.3 -0.2 -0.3 -0.1

Oct.

0.2 0.0 0.3 0.2 0.4 -0.1 -0.9 -1.4 -0.2 -0.1 -0.4 0.5

Nov.

0.0 -0.3 0.2 0.1 -0.1 0.2 -1.3 -2.5 0.3 0.2 0.2 0.2

Dec.

0.1 0.4 -0.1 0.0 0.2 -0.1 1.4 2.8 -0.3 0.5 0.8 0.0

2014

Jan.

0.3 0.5 0.2 1.1 1.5 0.5 0.3 0.1 0.6 1.2 2.1 0.1

Feb.(1)

0.2 0.1 0.1 0.4 0.6 0.4 3.8 6.3 0.3 0.0 -0.2 0.3

Mar.(1)

0.2 0.1 0.4 0.9 1.6 -0.1 -1.9 -3.0 -0.1 -0.3 -0.8 0.7

Apr.

0.2 0.2 0.1 0.4 0.7 0.2 -0.6 -1.0 -0.1 -0.1 -0.1 -0.2

May

-0.3 -0.1 -0.4 -0.3 -0.7 -0.1 0.3 1.0 -0.4 -0.6 -0.6 -0.6

June

0.5 0.3 0.6 0.1 0.0 0.3 0.4 0.3 0.6 0.5 0.4 0.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2014 have been revised to reflect the availability of late reports and corrections by respondents.

Stage 2 intermediate demand (The stage 2 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to industries 
classified in stage 3.):  The index for stage 2 intermediate demand moved up 0.4 percent in June 
following a 0.3-percent increase in May. In June, prices for total services inputs to stage 2 
intermediate demand climbed 0.6 percent, and the index for total goods inputs rose 0.3 percent. 
Advances in the indexes for deposit services (partial), crude petroleum, machinery and 
equipment parts and supplies wholesaling, gasoline, services related to securities brokerage and 
dealing, and chemicals and allied products wholesaling outweighed declines for grains, natural 
gas, and automotive fuels and lubricants retailing. For the 12 months ended in June, the index for 
stage 2 intermediate demand moved up 1.7 percent.

Stage 1 intermediate demand (The stage 1 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to industries 
classified in stage 2.):  The index for stage 1 intermediate demand increased 0.5 percent in June, 
following 3 consecutive declines. In June, prices for total services inputs to stage 1 intermediate 
demand rose 0.6 percent, and the index for total goods inputs moved up 0.4 percent. Advances in 
the indexes for services related to securities brokerage and dealing, gasoline, commercial electric 
power, nonferrous scrap, traveler accommodation services, and basic organic chemicals 
outweighed falling prices for carbon steel scrap; industrial natural gas; and securities brokerage, 
dealing, and investment advice. For the 12 months ended in June, the index for stage 1 
intermediate demand rose 1.9 percent.
____________
The Producer Price Index for July 2014 is scheduled to be released on Friday, August 15, 
2014 at 8:30 a.m. (EDT).

                                            *****



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Last Modified Date: July 16, 2014