Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL-15-1561 
8:30 a.m. (EDT), Friday, August 14, 2015

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                                  PRODUCER PRICE INDEXES - JULY 2015


The Producer Price Index for final demand advanced 0.2 percent in July, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.4 percent in June and 
0.5 percent in May. On an unadjusted basis, the final demand index moved down 0.8 percent for 
the 12 months ended in July, the sixth straight 12-month decline. (See table A.)

In July, the increase in the final demand index can be traced to prices for final demand services, 
which climbed 0.4 percent. In contrast, the index for final demand goods edged down 0.1 
percent.

Within intermediate demand, prices for processed goods moved down 0.2 percent, the index for 
unprocessed goods fell 2.9 percent, and prices for services advanced 0.2 percent. (See tables B 
and C.)

Final Demand

Final demand services: The index for final demand services moved up 0.4 percent in July, the 
largest rise since a 0.6-percent increase in October 2014. In July, 60 percent of the broad-based 
advance can be traced to a 0.4-percent rise in the index for final demand services less trade, 
transportation, and warehousing. Margins for final demand trade services also climbed 0.4 percent, 
and the index for final demand transportation and warehousing services moved up 0.2 percent. 
(Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Over 40 percent of the July increase in the index for final demand services is 
attributable to prices for guestroom rental, which jumped 9.9 percent. The indexes for automotive 
fuels and lubricants retailing; health, beauty, and optical goods retailing; securities brokerage, 
dealing, investment advice, and related services; computer hardware, software, and supplies retailing; 
and transportation of passengers (partial) also moved higher. Conversely, margins for apparel, 
footwear, and accessories retailing declined 4.2 percent. The indexes for loan services (partial) and 
truck transportation of freight also fell. (See table 4.)

Final demand goods: The index for final demand goods edged down 0.1 percent in July after rising 
0.7 percent in June. The decrease is mostly attributable to a 0.6-percent decline in prices for final 
demand energy. The index for final demand foods inched down 0.1 percent, and prices for final 
demand goods less foods and energy were unchanged. 

Product detail: A major factor in the July decrease in prices for final demand goods was the index 
for residential natural gas, which declined 2.4 percent. Prices for chicken eggs, home heating oil, 
pork, and nonferrous metals also moved lower. In contrast, the index for gasoline advanced 1.5 
percent. Prices for corn, motor vehicles, and basic organic chemicals also increased. 

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

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.

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

Feb.

-0.4 -0.4 -1.6 0.0 0.0 -0.5 -1.6 -0.9 0.1 -0.5

Mar.(1)

0.0 0.1 -1.0 1.2 0.0 0.1 0.2 -0.3 0.1 -0.9

Apr.(1)

-0.3 -0.6 -0.8 -2.5 -0.1 -0.1 -0.9 -0.5 0.4 -1.3

May

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

June

0.4 0.7 0.6 2.4 0.4 0.3 0.2 0.6 0.2 -0.7

July

0.2 -0.1 -0.1 -0.6 0.0 0.4 0.4 0.2 0.4 -0.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for March 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 rose 0.2 percent in July after climbing 0.3 percent in June. For the 
12 months ended in July, prices for final demand less foods, energy, and trade services increased 0.9 
percent.

Intermediate Demand by Commodity Type

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand decreased 0.2 percent in July following a 0.7-percent rise in the prior month. The decline is 
attributable to prices for processed energy goods, which fell 1.5 percent. Conversely, the indexes for 
processed foods and feeds and for processed materials less foods and energy moved up 0.9 percent 
and 0.1 percent, respectively. For the 12 months ended in July, the index for processed goods for 
intermediate demand decreased 6.6 percent, the ninth consecutive 12-month decline. (See table B.)

Product detail: In July, a 14.8-percent drop in prices for lubricating oil base stocks accounted for 
two-thirds of the decrease in the index for processed goods for intermediate demand. Prices for 
nonferrous metals, natural gas to electric utilities, diesel fuel, jet fuel, and pork also declined. In 
contrast, the index for soybean cake and meal rose 15.8 percent. Prices for basic organic chemicals 
and gasoline also increased. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand moved down 2.9 percent in July, the largest decrease since a 3.7-percent drop in February 
2015. Over three-quarters of the broad-based decline in July can be traced to prices for unprocessed 
energy materials, which fell 6.2 percent. The index for unprocessed foodstuffs and feedstuffs moved 
down 1.2 percent, and prices for unprocessed nonfood materials less energy decreased 0.5 percent. 
For the 12 months ended in July, the index for unprocessed goods for intermediate demand dropped 
22.7 percent.

Product detail: In July, a 12.3-percent drop in crude petroleum prices accounted for three-quarters of 
the decline in the index for unprocessed goods for intermediate demand. Prices for slaughter 
chickens, slaughter cattle, ungraded chicken eggs, nonferrous metals, and slaughter barrows and gilts 
also decreased. Conversely, the index for corn jumped 22.9 percent. Prices for unprocessed finfish 
and coal also advanced.

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

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.

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

Feb.

-0.5 -1.8 -0.8 -0.3 -6.4 -3.7 -5.6 0.0 -5.3 -25.2

Mar.(1)

-0.2 -1.1 0.4 -0.3 -6.7 -0.7 -0.4 -0.4 -1.6 -26.0

Apr.(1)

-1.0 -1.5 -3.2 -0.4 -7.8 0.3 -0.3 1.0 -0.3 -26.6

May

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

June

0.7 1.4 2.8 0.2 -6.3 1.2 1.0 2.2 0.3 -21.7

July

-0.2 0.9 -1.5 0.1 -6.6 -2.9 -1.2 -6.2 -0.5 -22.7

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for March 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 rose 0.2 percent 
in July following a 0.4-percent increase in June. Sixty percent of the July advance is attributable to 
margins for trade services for intermediate demand, which moved up 0.6 percent. The index for 
transportation and warehousing services for intermediate demand climbed 0.5 percent. Prices for 
services less trade, transportation, and warehousing for intermediate demand were unchanged. For 
the 12 months ended in July, the index for services for intermediate demand moved up 1.1 percent, 
the smallest 12-month increase since a 1.0-percent rise in April 2014. (See table C.)

Product detail: In July, a 3.1-percent advance in margins for building materials, paint, and hardware 
wholesaling was a major factor in the increase in prices for services for intermediate demand. The 
indexes for securities brokerage, dealing, investment advice, and related services; cable network 
advertising time sales; guestroom rental; food and alcohol wholesaling; and courier, messenger, and 
U.S. postal services also moved higher. In contrast, prices for loan services (partial) fell 2.4 percent. 
The indexes for chemicals and allied products wholesaling and for air transportation of freight 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

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.

0.1 0.7 -0.3 0.0 1.7

Feb.

-0.2 -1.0 -0.5 0.1 1.3

Mar.(1)

0.3 0.6 -0.3 0.3 1.2

Apr.(1)

0.4 -0.4 -0.2 0.7 1.8

May

-0.5 0.6 0.1 -0.8 1.3

June

0.4 -0.4 0.6 0.6 1.6

July

0.2 0.6 0.5 0.0 1.1

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for March 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 edged up 0.1 percent in 
July, the third consecutive increase. In July, prices for total services inputs to stage 4 intermediate 
demand advanced 0.1 percent, and the index for total goods inputs was unchanged. (See table D.) 
Increases in the indexes for securities brokerage, dealing, investment advice, and related services; 
corn; building materials, paint, and hardware wholesaling; food and alcohol wholesaling; and 
unprocessed finfish outweighed lower prices for loans services (partial), nonferrous metals, diesel 
fuel, and administrative and general management consulting services. (See table 6.) For the 12 
months ended in July, the stage 4 intermediate demand index decreased 1.1 percent, the seventh 
straight 12-month decline.

Stage 3 intermediate demand: The index for stage 3 intermediate demand fell 0.3 percent in July 
following a 0.7-percent advance in June. In July, prices for total goods inputs to stage 3 intermediate 
demand decreased 0.7 percent. Conversely, the index for total services inputs climbed 0.3 percent. 
Lower prices for slaughter chickens, slaughter cattle, ungraded chicken eggs, slaughter barrows and 
gilts, jet fuel, and loan services (partial) outweighed higher prices for securities brokerage, dealing, 
investment advice, and related services; basic organic chemicals; and raw milk. For the 12 months 
ended in July, the stage 3 intermediate demand index declined 4.8 percent, the seventh straight 12-
month decrease.

Stage 2 intermediate demand: The index for stage 2 intermediate demand moved down 0.6 percent 
in July after 3 consecutive increases. In July, prices for total goods inputs to stage 2 intermediate 
demand fell 2.1 percent. In contrast, the index for total services inputs rose 0.6 percent. Lower prices 
for crude petroleum, gas fuels, nonferrous metals, plastic resins and materials, lubricating oil base 
stocks, and administrative and general management consulting services outweighed advances in the 
indexes for securities brokerage, dealing, investment advice, and related services; cable network 
advertising time sales; and corn. For the 12 months ended in July, prices for stage 2 intermediate 
demand dropped 11.9 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand climbed 0.2 percent in 
July, the third straight advance. In July, prices for total services inputs to stage 1 intermediate 
demand rose 0.2 percent, and prices for total goods inputs edged up 0.1 percent. Increases in the 
indexes for guestroom rental; basic organic chemicals; corn; securities brokerage, dealing, 
investment advice, and related services; soybean cake and meal; and building materials, paint, and 
hardware wholesaling outweighed lower prices for loan services (partial), nonferrous metals, and 
diesel fuel. For the 12 months ended in July, the stage 1 intermediate demand index declined 8.1 
percent, the ninth 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

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.

-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.

-0.3 -0.4 -0.2 -1.3 -2.2 -0.3 -0.4 -0.9 0.0 -1.4 -1.9 -0.7

Mar.(1)

0.1 -0.2 0.4 0.3 0.5 0.2 -0.4 -0.9 0.1 -0.2 -0.5 0.4

Apr.(1)

-0.2 -0.6 0.3 -0.5 -1.3 0.3 0.1 -0.1 0.4 -0.7 -1.6 0.4

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

June

0.4 0.5 0.3 0.7 1.2 0.2 0.5 0.6 0.4 0.7 1.0 0.3

July

0.1 0.0 0.1 -0.3 -0.7 0.3 -0.6 -2.1 0.6 0.2 0.1 0.2

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

_____________
The Producer Price Index for August 2015 is scheduled to be released on Friday, 
September 11, 2015 at 8:30 a.m. (EDT).

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Last Modified Date: August 14, 2015