Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL-15-1135
8:30 a.m. (EDT), Friday, June 12, 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 - MAY 2015


The Producer Price Index for final demand rose 0.5 percent in May, seasonally adjusted, the U.S. 
Bureau of Labor Statistics reported today. Final demand prices fell 0.4 percent in April and 
advanced 0.2 percent in March. On an unadjusted basis, the final demand index declined 1.1 
percent for the 12 months ended in May, the fourth straight 12-month decrease. (See table A.)

In May, the increase in the final demand index can be traced to prices for final demand goods, 
which rose 1.3 percent. The index for final demand services was unchanged.

Within intermediate demand, prices for processed goods climbed 1.0 percent, the index for 
unprocessed goods jumped 3.3 percent, and prices for services fell 0.5 percent. (See tables B and 
C.)

Final Demand

Final demand goods:  The index for final demand goods moved up 1.3 percent in May following a 
0.7-percent decline in April. Eighty percent of the broad-based advance is attributable to prices for 
final demand energy, which increased 5.9 percent. The indexes for final demand goods less foods 
and energy and for final demand foods rose 0.2 percent and 0.8 percent, respectively.

Product detail:  Sixty percent of the May advance in prices for final demand goods can be traced to 
the gasoline index, which jumped 17.0 percent. Prices for diesel fuel, chicken eggs, jet fuel, 
pharmaceutical preparations, and motor vehicles also moved higher. In contrast, the index for 
residential natural gas fell 1.6 percent. Prices for hay, hayseeds, and oilseeds and for primary basic 
organic chemicals also decreased. (See table 4.)

Final demand services:  The index for final demand services was unchanged in May after inching 
down 0.1 percent in April. In May, a 0.6-percent increase in margins for final demand trade services 
offset a 0.2-percent decline in prices for final demand services less trade, transportation, and 
warehousing and a 0.1-percent decrease in the index for final demand transportation and 
warehousing services. (Trade indexes measure changes in margins received by wholesalers and 
retailers.)

Product detail:  Among final demand services in May, margins for food and alcohol retailing 
advanced 4.2 percent. The indexes for apparel, jewelry, footwear, and accessories retailing; 
television, video, and photographic equipment and supplies retailing; inpatient care; and residential 
real estate services (partial) also moved higher. Conversely, prices for services related to securities 
brokerage and dealing fell 7.4 percent. The indexes for machinery and equipment wholesaling; loan 
services (partial); health, beauty, and optical goods retailing; and wireless telecommunication 
services and also declined.

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

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.

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

Nov.

-0.3 -0.8 0.1 -3.7 -0.1 0.0 -0.4 0.3 0.1 1.3

Dec.

-0.3 -1.2 -0.1 -6.6 0.0 0.3 0.5 0.0 0.2 0.9

2015

Jan.(1)

-0.7 -1.9 -0.9 -10.1 0.1 -0.1 0.5 -1.0 -0.2 0.0

Feb.(1)

-0.5 -0.5 -1.6 0.1 -0.2 -0.5 -1.3 -1.5 0.1 -0.6

Mar.

0.2 0.3 -0.8 1.5 0.2 0.1 -0.2 -0.2 0.3 -0.8

Apr.

-0.4 -0.7 -0.9 -2.9 -0.1 -0.1 -0.8 -0.1 0.2 -1.3

May

0.5 1.3 0.8 5.9 0.2 0.0 0.6 -0.1 -0.2 -1.1

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2015 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 edged down 0.1 percent in May after inching up 0.1 percent in 
April. For the 12 months ended in May, prices for final demand less foods, energy, and trade services 
increased 0.6 percent.

Intermediate Demand by Commodity Type

Processed goods for intermediate demand:  The index for processed goods for intermediate 
demand moved up 1.0 percent in May following nine consecutive declines. Most of the increase can 
be traced to a 5.8-percent jump in prices for processed energy goods. The index for processed foods 
and feeds advanced 0.5 percent. In contrast, prices for processed materials less foods and energy fell 
0.2 percent. For the 12 months ended in May, the index for processed goods for intermediate demand 
dropped 7.0 percent. (See table B.)

Product detail:  In May, an 18.8-percent jump in prices for diesel fuel was a major factor in the 
increase in the index for processed goods for intermediate demand. The indexes for gasoline, natural 
gas to electric utilities, jet fuel, processed eggs, and basic inorganic chemicals also moved higher. 
Conversely, prices for primary basic organic chemicals fell 3.3 percent. The indexes for prepared 
animal feeds and industrial electric power also decreased. (See table 5.)

Unprocessed goods for intermediate demand:  The index for unprocessed goods for intermediate 
demand climbed 3.3 percent in May, the largest increase since a 4.6-percent advance in February 
2014. In May, 80 percent of the rise can be traced to prices for unprocessed energy materials, which 
jumped 7.7 percent. The index for unprocessed foodstuffs and feedstuffs climbed 1.4 percent. In 
contrast, prices for unprocessed nonfood materials less energy edged down 0.1 percent. For the 12 
months ended in May, the index for unprocessed goods for intermediate demand fell 23.3 percent.

Product detail:  In May, a 15.6-percent advance in prices for crude petroleum accounted for three-
quarters of the increase in the index for unprocessed goods for intermediate demand. The indexes for 
slaughter barrows and gilts, ungraded chicken eggs, unprocessed finfish, raw milk, and coal also 
advanced. Conversely, prices for high-grade wastepaper declined 10.5 percent. The indexes for hay, 
hayseeds, and oilseeds and for natural gas also moved lower.

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

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.

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

Nov.

-1.0 0.0 -3.6 -0.5 -0.6 -1.3 1.7 -4.3 -1.6 -1.6

Dec.

-1.8 -0.3 -6.2 -0.6 -2.6 -5.2 -5.5 -7.3 -0.6 -8.7

2015

Jan.(1)

-2.4 -2.3 -7.8 -1.0 -5.6 -9.3 -3.1 -21.8 -1.0 -18.8

Feb.(1)

-0.5 -2.0 -0.6 -0.3 -6.4 -3.4 -5.5 0.4 -4.8 -25.0

Mar.

-0.1 -0.8 0.5 -0.2 -6.7 -1.7 -1.4 -1.4 -2.3 -26.5

Apr.

-1.1 -1.7 -3.4 -0.5 -7.8 0.9 0.5 1.7 0.0 -26.6

May

1.0 0.5 5.8 -0.2 -7.0 3.3 1.4 7.7 -0.1 -23.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2015 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 moved 
down 0.5 percent in May, the largest decrease since falling 0.5 percent in May 2013. The May 
2015 decline is attributable to a 0.8-percent drop in prices for services less trade, transportation, 
and warehousing for intermediate demand. In contrast, the indexes for trade services for 
intermediate demand and for transportation and warehousing services for intermediate demand 
moved up 0.6 percent and 0.1 percent, respectively. For the 12 months ended in May, prices for 
services for intermediate demand rose 1.3 percent. (See table C.)

Product detail:  In May, a 7.4-percent decrease in the index for services related to securities 
brokerage and dealing accounted for about 40 percent of the drop in prices for services for 
intermediate demand. The indexes for loan services (partial), television advertising time sales, 
deposit services (partial), wireless telecommunication services, and fuels and lubricants retailing 
also fell. Conversely, margins for metals, minerals, and ores wholesaling rose 3.6 percent. The 
indexes for services related to air transportation and legal services also moved higher.

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

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.

0.4 1.4 -0.2 0.3 1.8

Nov.

0.0 -0.4 0.1 0.1 1.5

Dec.

0.2 0.4 0.0 0.2 1.8

2015

Jan.(1)

0.1 0.7 -0.3 0.0 1.7

Feb.(1)

-0.3 -0.9 -0.7 -0.1 1.2

Mar.

0.2 0.2 -0.4 0.4 1.0

Apr.

0.5 -0.1 0.1 0.7 1.8

May

-0.5 0.6 0.1 -0.8 1.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2015 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 advanced 0.2 percent in 
May after declining 0.2 percent in April. In May, prices for total goods inputs to stage 4 intermediate 
demand jumped 0.6 percent. In contrast, the index for total services inputs decreased 0.2 percent. 
(See table D.) Increases in the indexes for diesel fuel; gasoline; unprocessed finfish; metals, minerals, 
and ores wholesaling; parts and supplies for machinery and equipment wholesaling; and building 
materials, paint, and hardware wholesaling outweighed falling prices for loans services (partial), 
services related to securities brokerage and dealing, and lumber. (See table 6.) For the 12 months 
ended in May, the stage 4 intermediate demand index declined 1.1 percent, the fifth consecutive 12-
month decrease.

Stage 3 intermediate demand:  The index for stage 3 intermediate demand rose 1.2 percent in May, 
the largest increase since a 1.4-percent advance in April 2011. In May, prices for total goods inputs 
to stage 3 intermediate demand jumped 2.3 percent. Conversely, the total services inputs index 
moved down 0.2 percent. Rising indexes for gasoline; slaughter barrows and gilts; jet fuel; diesel 
fuel; ungraded chicken eggs; and metals, minerals, and ores wholesaling outweighed declines in 
prices for services related to securities brokerage and dealing, slaughter chickens, and primary basic 
organic chemicals. For the 12 months ended in May, the stage 3 intermediate demand index 
decreased 4.8 percent, the fifth consecutive 12-month decline.

Stage 2 intermediate demand:  The index for stage 2 intermediate demand advanced 0.8 percent in 
May, the largest rise since jumping 3.5 percent in February 2014. In May, prices for total goods 
inputs to stage 2 intermediate demand increased 2.2 percent. In contrast, the index for total services 
inputs fell 0.4 percent. Advances in the indexes for crude petroleum, diesel fuel, lubricating oil base 
stocks, thermoplastic resins and materials, gasoline, and maintenance and repair of nonresidential 
buildings (partial) outweighed declining prices for services related to securities brokerage and 
dealing, prepared animal feeds, and gas fuels. For the 12 months ended in May, the stage 2 
intermediate demand index dropped 12.6 percent, the eleventh straight 12-month decrease. 

Stage 1 intermediate demand:  The index for stage 1 intermediate demand increased 0.6 percent in 
May, the first rise since a 0.9-percent advance in July 2014. In May, prices for total goods inputs to 
stage 1 intermediate demand jumped 1.4 percent. Conversely, the index for total services inputs fell 
0.6 percent. Increases in the indexes for diesel fuel; gasoline; crude petroleum; metals, minerals, and 
ores wholesaling; copper base scrap; and residual fuels outweighed declining prices for loan services 
(partial), primary basic organic chemicals, and services related to securities brokerage and dealing. 
For the 12 months ended in May, the index for stage 1 intermediate demand dropped 7.7 percent, the 
seventh consecutive 12-month decrease.

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

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.

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.

-0.3 -0.5 0.0 -0.3 -0.8 0.2 -1.3 -2.3 -0.1 -1.5 -2.4 -0.3

Dec.

-0.4 -1.0 0.3 -1.9 -3.3 -0.2 -2.3 -4.4 0.2 -1.4 -3.2 1.1

2015

Jan.(1)

-0.5 -1.2 0.3 -2.4 -4.5 0.2 -4.3 -9.0 -0.2 -2.8 -5.0 0.2

Feb.(1)

-0.3 -0.4 -0.2 -1.3 -2.2 -0.1 -0.3 -0.2 -0.3 -1.4 -1.9 -0.7

Mar.

0.1 -0.2 0.5 0.2 0.3 0.0 -0.5 -1.5 0.2 -0.2 -0.4 0.2

Apr.

-0.2 -0.6 0.2 -0.5 -1.1 0.3 0.1 -0.2 0.6 -0.7 -1.7 0.6

May

0.2 0.6 -0.2 1.2 2.3 -0.2 0.8 2.2 -0.4 0.6 1.4 -0.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 2015 have been revised to reflect the availability of late reports and corrections by respondents.

_____________
The Producer Price Index for June 2015 is scheduled to be released on Wednesday, July 15, 
2015 at 8:30 a.m. (EDT).

                                             *****

                          Respondent Samples to be Updated 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 been 
updated 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 triannual 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: June 12, 2015