Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL-15-0388
8:30 a.m. (EDT), Friday, March 13, 2015

Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov                                    
           
                        
                              PRODUCER PRICE INDEXES - FEBRUARY 2015


The Producer Price Index for final demand fell 0.5 percent in February, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices moved down 0.8 percent in 
January and 0.2 percent in December. On an unadjusted basis, the index for final demand 
decreased 0.6 percent for the 12 months ended in February. (See table A.)

In February, about 70 percent of the decline in final demand prices can be attributed to a 0.5-
percent decrease in the index for final demand services. Prices for final demand goods moved 
down 0.4 percent.

Within intermediate demand, the index for processed goods fell 0.6 percent, the index for 
unprocessed goods dropped 3.9 percent, and prices for services edged up 0.1 percent. (See tables 
B and C.)

Final Demand

Final demand services:  Prices for final demand services fell 0.5 percent in February, the largest 
decline since the inception of the index in December 2009. Leading the decrease, margins for final 
demand trade services dropped 1.5 percent. (Trade indexes measure changes in margins received by 
wholesalers and retailers.) The index for final demand transportation and warehousing services also 
moved down 1.5 percent. In contrast, prices for final demand services less trade, transportation, and 
warehousing rose 0.3 percent.

Product detail:  In February, nearly 30 percent of the decline in the index for final demand services 
can be traced to margins for fuels and lubricants retailing, which fell 13.4 percent. The indexes for 
machinery, equipment, parts, and supplies wholesaling; food and alcohol retailing; apparel, jewelry, 
footwear, and accessories retailing; truck transportation of freight; and wireless telecommunication 
services also moved lower. Conversely, prices for inpatient care advanced 0.6 percent. The indexes 
for outpatient care (partial) and for TV, video, and photographic equipment and supplies wholesaling 
also increased. (See table 4.)

Final demand goods:  The index for final demand goods moved down 0.4 percent in February, the 
eighth consecutive decrease. Over two-thirds of the decline in February can be attributed to prices for 
final demand foods, which fell 1.6 percent. The index for final demand goods less foods and energy 
inched down 0.1 percent, and prices for final demand energy were unchanged.

Product detail:  About a quarter of the decline in prices for final demand goods can be traced to the 
index for fresh and dry vegetables, which dropped 17.1 percent. Prices for iron and steel scrap, 
meats, jet fuel, industrial chemicals, and processed poultry also moved lower. In contrast, the index 
for gasoline rose 1.5 percent. Prices for light motor trucks and chicken eggs also moved up. 

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

2014

Feb.

0.2 0.1 0.5 -0.5 0.1 0.2 0.6 -0.3 0.2 1.2

Mar.

0.3 0.3 1.2 0.4 0.0 0.5 0.6 0.5 0.2 1.6

Apr.

0.1 0.3 1.8 -0.5 0.2 -0.1 -0.5 0.5 0.1 1.8

May

0.3 0.1 -0.1 0.4 0.1 0.4 1.1 0.3 -0.1 2.1

June

0.1 0.3 0.1 0.7 0.1 -0.1 -0.5 0.4 0.3 1.8

July

0.3 -0.1 -0.2 -0.8 0.2 0.6 1.6 0.2 0.1 1.9

Aug.

-0.1 -0.3 -0.2 -1.0 0.0 -0.1 -0.6 0.2 0.3 1.9

Sept.

-0.2 -0.1 -0.1 -0.9 0.2 -0.3 -0.8 -0.2 0.0 1.6

Oct.(1)

0.3 -0.4 0.6 -2.6 -0.1 0.6 2.0 -0.4 0.0 1.5

Nov.(1)

-0.3 -0.7 0.2 -3.7 0.0 0.1 -0.2 0.3 0.2 1.4

Dec.

-0.2 -1.1 -0.1 -6.2 0.1 0.3 0.5 -0.2 0.1 1.1

2015

Jan.

-0.8 -2.1 -1.1 -10.3 -0.2 -0.2 0.5 -0.8 -0.4 0.0

Feb.

-0.5 -0.4 -1.6 0.0 -0.1 -0.5 -1.5 -1.5 0.3 -0.6

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

Special grouping, Final demand less foods, energy, and trade:  The index for final demand less 
foods, energy, and trade services was unchanged after falling 0.3 percent in January. For the 12 
months ended in February, prices for final demand less foods, energy, and trade services rose 0.7 
percent.

Intermediate Demand by Commodity Type

Processed goods for intermediate demand:  The index for processed goods for intermediate 
demand fell 0.6 percent in February, the seventh straight decline. Half of the February decrease is 
attributable to prices for processed materials less foods and energy, which moved down 0.4 percent. 
In addition, the index for processed foods and feeds dropped 1.9 percent, and prices for processed 
energy goods fell 0.6 percent. For the 12 months ended in February, the index for processed goods 
for intermediate demand decreased 6.4 percent, the largest 12-month decline since a 7.7-percent drop 
in October 2009. (See table B.)

Product detail:  Over 20 percent of the decrease in prices for processed goods for intermediate 
demand can be traced to the index for industrial chemicals, which declined 1.9 percent. Prices for 
steel mill products, plastic resins and materials, meats, prepared animal feeds, and jet fuel also moved 
lower. Conversely, the index for gasoline rose 1.5 percent. The indexes for lubricating oil base stocks 
and paint colors also advanced. (See table 5.)

Unprocessed goods for intermediate demand:  The index for unprocessed goods for intermediate 
demand fell 3.9 percent in February, the fifth straight decrease. Three-quarters of the decline in 
February can be attributed to prices for unprocessed foodstuffs and feedstuffs, which dropped 6.7 
percent. The index for unprocessed nonfood materials less energy fell 5.2 percent. In contrast, prices 
for unprocessed energy materials advanced 0.9 percent. For the 12 months ended in February, the 
index for unprocessed goods for intermediate demand decreased 25.0 percent, the largest 12-month 
drop since a 31.7-percent decline in September 2009.

Product detail:  A major factor in the February decline in prices for unprocessed goods for 
intermediate demand was the index for slaughter poultry, which fell 14.7 percent. The indexes for 
natural gas; iron and steel scrap; raw milk; slaughter livestock; and hay, hayseeds, and oilseeds also 
decreased. Conversely, the index for crude petroleum moved up 12.3 percent. Prices for ungraded 
chicken eggs and gold ores also rose.

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.)

2014

Feb.

0.2 0.7 -0.4 0.4 -0.2 4.6 0.0 13.0 -1.1 5.1

Mar.

0.0 0.7 0.6 -0.2 0.7 0.4 5.3 -3.6 -0.5 5.3

Apr.

0.0 2.3 -1.7 0.2 1.5 1.1 2.9 -1.0 1.4 6.5

May

0.1 0.0 0.8 -0.1 1.4 -1.1 -1.9 -0.8 -0.3 4.2

June

0.1 0.4 0.4 0.1 1.5 -1.1 -2.1 0.1 -1.6 3.7

July

0.1 -0.7 -0.4 0.4 1.6 -1.7 -0.9 -3.5 0.3 0.9

Aug.

-0.1 -0.3 -1.0 0.2 1.4 -3.0 -2.1 -5.3 -0.8 -0.5

Sept.

-0.2 0.8 -1.1 -0.1 1.1 0.1 2.3 -1.9 0.1 -0.2

Oct.(1)

-1.0 -1.7 -2.8 -0.3 0.2 -3.3 0.0 -7.0 -2.5 -2.1

Nov.(1)

-0.8 0.2 -3.6 -0.2 -0.3 -1.3 1.9 -4.8 -1.6 -1.6

Dec.

-1.6 -0.3 -5.6 -0.6 -2.2 -4.6 -5.7 -5.1 -0.4 -8.1

2015

Jan.

-2.8 -2.5 -8.3 -1.3 -5.5 -9.4 -1.8 -23.6 -0.7 -18.4

Feb.

-0.6 -1.9 -0.6 -0.4 -6.4 -3.9 -6.7 0.9 -5.2 -25.0

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

Services for intermediate demand:  The index for services for intermediate demand advanced 0.1 
percent in February following a 0.2-percent decrease in January. Leading the increase, prices for 
services less trade, transportation, and warehousing for intermediate demand rose 0.2 percent. The 
index for trade services for intermediate demand inched up 0.1 percent. In contrast, prices for 
transportation and warehousing services for intermediate demand fell 0.8 percent. For the 12 months 
ended in February, the index for services for intermediate demand moved up 1.2 percent, the smallest 
advance since a 1.0-percent increase in April 2014. (See table C.)

Product detail:  In February, a 1.3-percent rise in the index for securities brokerage, dealing, 
investment advice, and related services led the advance in prices for services for intermediate 
demand. The indexes for legal services; metals, minerals, and ores wholesaling; management 
consulting services; and hardware, building material, and related supplies retailing also moved 
higher. Conversely, prices for truck transportation of freight fell 1.3 percent. The indexes for co-
employment staffing services, wireless telecommunication services, and 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.)

2014

Feb.

0.1 0.1 0.9 0.0 1.4

Mar.

0.4 0.5 0.2 0.4 1.7

Apr.

-0.2 -1.2 0.3 -0.1 1.0

May

0.0 1.0 0.3 -0.3 1.5

June

0.1 -0.4 0.3 0.2 1.3

July

0.6 1.4 0.3 0.5 1.9

Aug.

0.0 -0.3 0.2 0.0 1.7

Sept.

-0.1 0.3 -0.1 -0.2 1.5

Oct.(1)

0.4 1.4 -0.2 0.3 1.8

Nov.(1)

0.0 -1.1 0.1 0.4 1.5

Dec.

0.1 0.2 0.0 0.0 1.7

2015

Jan.

-0.2 0.7 -0.3 -0.4 1.3

Feb.

0.1 0.1 -0.8 0.2 1.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 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 index for stage 4 intermediate demand edged down 0.1 percent 
in February, the fourth consecutive decline. In February, prices for total goods inputs to stage 4 
intermediate demand fell 0.4 percent. In contrast, the index for total services inputs increased 0.2 
percent. (See table D.) Lower prices for meats, co-employment staffing services, truck transportation 
of freight, unprocessed and packaged fish, and industrial chemicals outweighed advances in the 
indexes for legal services; management consulting services; securities brokerage, dealing, investment 
advice, and related services; and plastic construction products. (See table 6.) For the 12 months 
ended in February, prices for stage 4 intermediate demand decreased 0.7 percent.

Stage 3 intermediate demand:  Prices for stage 3 intermediate demand dropped 1.4 percent in 
February, the fifth straight decrease. In February, the index for total goods inputs to stage 3 
intermediate demand fell 2.7 percent. Conversely, prices for total services inputs edged up 0.1 
percent. Declines in the indexes for slaughter poultry, raw milk, slaughter livestock, jet fuel, 
industrial chemicals, and passenger car rental outweighed advances in the indexes for metals, 
minerals, and ores wholesaling; ungraded chicken eggs; and gasoline. For the 12 months ended in 
February, prices for stage 3 intermediate demand moved down 5.0 percent.

Stage 2 intermediate demand:  The index for stage 2 intermediate demand decreased 0.2 percent in 
February after dropping 5.0 percent in January. In February, prices for total goods inputs to stage 2 
intermediate demand fell 0.6 percent. In contrast, the index for total services inputs moved up 0.2 
percent. Lower prices for natural gas, plastic resins and materials, prepared animal feeds, steel mill 
products, co-employment staffing services, and iron and steel scrap outweighed higher prices for 
legal services; crude petroleum; and securities brokerage, dealing, investment advice, and related 
services. For the 12 months ended in February, the index for stage 2 intermediate demand dropped 
14.2 percent.

Stage 1 intermediate demand:  Prices for stage 1 intermediate demand fell 1.4 percent in February, 
the sixth straight decline. In February, the index for total goods inputs to stage 1 intermediate 
demand decreased 2.2 percent, and prices for total services inputs moved down 0.3 percent. Lower 
prices for iron and steel scrap, industrial chemicals, nonferrous scrap, wireless telecommunication 
services, natural gas, and diesel fuel outweighed advances in the indexes for metals, minerals, and 
ores wholesaling; crude petroleum; and securities brokerage, dealing, investment advice, and related 
services. For the 12 months ended in February, prices for stage 1 intermediate demand fell 7.5 
percent.

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

2014

Feb.

0.0 0.0 0.1 0.3 0.3 0.2 3.5 5.9 0.3 0.0 -0.3 0.3

Mar.

0.5 0.4 0.6 0.9 1.5 0.3 -1.2 -2.1 0.0 -0.3 -0.8 0.5

Apr.

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

May

0.1 0.2 -0.1 -0.2 -0.5 0.0 -0.3 -0.4 0.0 -0.2 -0.2 -0.2

June

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

July

0.3 0.0 0.6 0.5 0.5 0.4 -0.9 -1.9 0.6 0.9 0.7 0.9

Aug.

0.0 -0.1 0.0 -0.3 -0.7 0.2 -1.6 -2.7 -0.1 0.0 0.1 0.0

Sept.

-0.1 -0.1 0.0 0.3 0.7 -0.2 -0.6 -1.0 -0.1 -0.4 -0.8 0.1

Oct.(1)

0.0 -0.5 0.4 -0.3 -0.8 0.2 -2.3 -4.5 0.6 -0.9 -1.8 0.4

Nov.(1)

-0.4 -0.5 -0.2 -0.3 -0.7 0.3 -1.0 -2.1 0.3 -0.9 -1.5 -0.3

Dec.

-0.3 -0.9 0.4 -1.9 -3.2 -0.2 -2.0 -3.4 -0.4 -1.5 -3.1 0.8

2015

Jan.

-0.7 -1.3 0.0 -2.4 -4.2 -0.1 -5.0 -9.8 -0.5 -3.3 -5.7 0.0

Feb.

-0.1 -0.4 0.2 -1.4 -2.7 0.1 -0.2 -0.6 0.2 -1.4 -2.2 -0.3

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

_____________
The Producer Price Index for March 2015 is scheduled to be released on Tuesday, April 14, 
2015 at 8:30 a.m. (EDT).

                                         *****

                             PPI to Update Samples More Frequently

The Producer Price Index (PPI) periodically updates the sample of producers providing index 
data in order to reflect current conditions more accurately when the structure, membership, 
technology, or product mix of an industry shifts. Since 1986, these sample changes have 
occurred at semi-annual intervals, with the release of data for January and July. Effective with 
the release of PPI data for June 2015 on July 15, 2015, PPI will update samples on a tri-annual 
basis, coinciding with the release of data for February, June, and October (in March, July, and 
November, respectively). This accelerated approach to replacing industry samples will result in 
indexes that better represent current industry production and will improve data quality.

With each sample update, PPI will continue to publish a notice listing the impacted industries in 
both the PPI News Release and PPI Detailed Report. In addition, PPI will continue to publish 
information on specific index additions, deletions, and recodes associated with the updated 
samples in the PPI Detailed Report. 

For further information, contact the PPI Section of Index Analysis and Public Information, at 
ppi-info@bls.gov or (202) 691-7705.

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Last Modified Date: March 13, 2015