Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL 16-2165 
8:30 a.m. (EST), Wednesday, November 16, 2016

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


                                PRODUCER PRICE INDEXES - OCTOBER 2016


The Producer Price Index for final demand was unchanged in October, seasonally adjusted, the 
U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.3 percent in 
September and were unchanged in August. (See table A.) On an unadjusted basis, the final 
demand index increased 0.8 percent for the 12 months ended in October, the largest 12-month 
rise since advancing 0.9 percent in December 2014. 

Within final demand in October, a 0.4-percent increase in the index for final demand goods 
offset a 0.3-percent decline in prices for final demand services.

Prices for final demand less foods, energy, and trade services edged down 0.1 percent in October 
after rising 0.3 percent in both August and September. For the 12 months ended in October, the 
index for final demand less foods, energy, and trade services advanced 1.6 percent, the largest 
increase since climbing 1.7 percent for the 12 months ended September 2014.

Final Demand

Final demand goods: Prices for final demand goods moved up 0.4 percent in October, the second 
straight increase. Most of the October advance can be attributed to a 2.5-percent rise in the index for 
final demand energy. Prices for final demand goods less foods and energy inched up 0.1 percent. In 
contrast, the index for final demand foods declined 0.8 percent.

Product detail: The October increase in the index for final demand goods can be traced primarily to a 
9.7-percent jump in gasoline prices. The indexes for light motor trucks, beef and veal, industrial 
chemicals, jet fuel, and liquefied petroleum gas also advanced. (In accordance with usual practice, 
most new-model-year passenger cars and light motor trucks were introduced into the PPI in October. 
See Report on Quality Changes for 2017 Model Vehicles, at www.bls.gov/web/ppi/ppimotveh.htm.) 
Conversely, the index for fresh and dry vegetables fell 5.0 percent. Prices for electric power and for 
iron and steel scrap also decreased. (See table 4.)

Final demand services: In October, prices for final demand services fell 0.3 percent following a 0.1-
percent rise in both August and September. The decrease was led by the index for final demand 
services less trade, transportation, and warehousing, which declined 0.3 percent. Prices for final 
demand trade services also fell 0.3 percent. (Trade indexes measure changes in margins received by 
wholesalers and retailers.) In contrast, the index for final demand transportation and warehousing 
services increased 0.2 percent.

Product detail: A major factor in the October decrease in the index for final demand services was 
prices for securities brokerage, dealing, investment advice, and related services, which fell 5.7 
percent. The indexes for food and alcohol retailing; fuels and lubricants retailing; apparel, jewelry, 
footwear, and accessories retailing; consumer loans (partial); and hospital outpatient care also moved 
lower. Conversely, prices for truck transportation of freight increased 0.3 percent. The indexes for 
machinery, equipment, parts, and supplies wholesaling and guestroom rental also advanced.

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

2015

Oct.

-0.2 -0.2 -0.3 -0.7 -0.2 -0.3 -0.2 -0.2 -0.1 -0.1 -1.4 0.4

Nov.

0.1 0.1 -0.1 -0.3 0.1 -0.1 0.1 0.1 0.1 0.1 -1.3 0.2

Dec.

-0.1 0.1 -0.6 -0.9 -3.5 0.1 0.3 0.4 -0.8 0.2 -1.1 0.3

2016

Jan.

0.4 0.3 -0.5 0.9 -4.3 0.1 0.9 1.7 0.5 0.6 0.0 0.8

Feb.

-0.3 0.1 -0.7 0.1 -4.9 0.0 -0.1 -0.5 -0.3 0.1 0.1 0.9

Mar.

-0.2 0.1 0.0 -1.4 1.1 0.2 -0.3 -0.7 -0.3 0.1 -0.1 0.9

Apr.

0.3 0.2 0.4 -0.5 1.8 0.3 0.2 0.3 -0.3 0.2 0.2 1.0

May

0.3 0.0 0.8 0.6 3.7 0.2 0.0 0.1 -0.7 0.0 0.0 1.0

June(1)

0.5 0.3 0.7 0.5 3.1 0.3 0.4 0.7 0.2 0.3 0.2 1.0

July(1)

-0.4 -0.1 -0.4 -0.9 -0.8 -0.2 -0.2 -0.8 0.1 0.1 -0.2 0.8

Aug.

0.0 0.3 -0.4 -1.6 -0.8 0.1 0.1 -0.6 -0.4 0.5 0.0 1.2

Sept.

0.3 0.3 0.7 0.5 2.5 0.3 0.1 -0.4 1.3 0.2 0.7 1.5

Oct.

0.0 -0.1 0.4 -0.8 2.5 0.1 -0.3 -0.3 0.2 -0.3 0.8 1.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for June 2016 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in October, prices for processed goods advanced 0.3 percent, the index 
for unprocessed goods fell 0.6 percent, and prices for services decreased 0.6 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved up 0.3 percent in October, the second consecutive increase. Nearly two-thirds of the 
rise in October can be traced to prices for processed energy goods, which climbed 1.2 percent. The 
index for processed materials less foods and energy advanced 0.2 percent. In contrast, prices for 
processed foods and feeds declined 0.7 percent. For the 12 months ended in October, the index for 
processed goods for intermediate demand fell 0.5 percent.

Product detail: Contributing to the October advance in the index for processed goods for 
intermediate demand, jet fuel prices increased 7.2 percent. The indexes for gasoline, industrial 
chemicals, plastic resins and materials, liquefied petroleum gas, and beef and veal also moved higher. 
Conversely, prices for natural cheese, except cottage cheese, dropped 5.8 percent. The indexes for 
electric power and biological products for human use also decreased. (See table 5.)

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate 
demand fell 0.6 percent in October following a 1.3-percent rise in September. Most of the decrease is 
attributable to a 5.7-percent drop in the index for unprocessed foodstuffs and feedstuffs. Prices for 
unprocessed nonfood materials less energy fell 1.1 percent. In contrast, the index for unprocessed 
energy materials increased 5.8 percent. For the 12 months ended in October, prices for unprocessed 
goods for intermediate demand decreased 4.2 percent.

Product detail: Most of the October decrease in the index for unprocessed goods for intermediate 
demand can be traced to prices for slaughter livestock, which fell 11.5 percent. The indexes for 
slaughter poultry, iron and steel scrap, raw milk, hay and hayseeds, and tree nuts also declined. 
Conversely, prices for crude petroleum rose 10.4 percent. The indexes for corn and wastepaper also 
moved higher.

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.)

2015

Oct.

-0.4 -0.7 -1.0 -0.3 -7.7 -1.3 -1.4 -0.4 -2.3 -24.0

Nov.

-0.5 -0.9 -1.1 -0.2 -7.2 -4.3 -2.3 -7.6 -3.7 -26.4

Dec.

-1.1 -2.0 -4.0 -0.4 -6.6 -3.9 -3.0 -7.2 -0.9 -25.3

2016

Jan.

-0.9 -0.7 -3.4 -0.4 -5.3 0.2 4.8 -6.0 -0.5 -17.5

Feb.

-0.9 0.6 -4.8 -0.3 -5.8 -1.9 -1.0 -5.7 0.6 -16.4

Mar.

0.0 -0.6 0.5 0.0 -5.5 1.6 -0.8 3.9 2.5 -14.4

Apr.

0.3 -0.4 1.0 0.3 -4.6 2.2 -2.1 8.3 3.5 -13.0

May

0.9 1.0 3.7 0.3 -4.5 3.2 -0.1 7.9 3.8 -12.8

June(1)

0.9 1.5 3.7 0.2 -4.1 2.3 1.0 6.4 -0.2 -10.8

July(1)

0.2 0.3 0.3 0.1 -3.7 -1.1 -4.6 4.1 -0.9 -8.7

Aug.

-0.1 -1.9 -1.1 0.3 -3.1 -2.8 -1.8 -6.8 0.8 -8.4

Sept.

0.5 -0.7 2.5 0.3 -1.2 1.3 -1.5 7.4 -1.4 -4.8

Oct.

0.3 -0.7 1.2 0.2 -0.5 -0.6 -5.7 5.8 -1.1 -4.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for June 2016 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 fell 0.6 percent 
in October, the largest decline since the inception of the index in November 2009. Almost 90 percent 
of the October decline can be traced to prices for services less trade, transportation, and warehousing 
for intermediate demand, which decreased 0.8 percent. Margins for trade services for intermediate 
demand fell 0.5 percent. In contrast, transportation and warehousing services for intermediate 
demand rose 0.2 percent. For the 12 months ended in October, the index for services for intermediate 
demand moved up 2.3 percent.

Product detail: A major factor in the October decline in the index for services for intermediate 
demand was prices for business loans (partial), which fell 3.1 percent. The indexes for securities 
brokerage, dealing, investment advice, and related services; metals, minerals, and ores wholesaling; 
chemicals and allied products wholesaling; marketing consulting services; and fuels and lubricants 
retailing also moved lower. Conversely, prices for courier, messenger, and U.S. postal services 
advanced 0.4 percent. The indexes for broadcast and network television advertising time sales and 
for machinery and equipment parts and supplies wholesaling also increased.

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.)

2015

Oct.

-0.5 -0.3 -0.1 -0.6 0.2

Nov.

0.1 -0.4 0.1 0.2 0.4

Dec.

0.2 -1.0 -0.2 0.6 0.5

2016

Jan.

1.3 0.5 -0.5 1.9 1.5

Feb.

0.2 -0.3 0.0 0.3 1.9

Mar.

0.0 -0.1 -0.1 0.1 1.6

Apr.

0.0 -0.1 -0.5 0.1 1.1

May

-0.2 0.3 -0.1 -0.3 1.1

June(1)

0.4 1.1 0.3 0.4 1.4

July(1)

0.4 0.1 0.3 0.5 1.6

Aug.

0.0 -1.3 0.1 0.4 1.4

Sept.

0.4 -0.2 0.6 0.5 2.5

Oct.

-0.6 -0.5 0.2 -0.8 2.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for June 2016 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 fell 0.2 percent in 
October, the first decline since inching down 0.1 percent in March. In October, prices for total 
services inputs to stage 4 intermediate demand dropped 0.5 percent, and the index for total goods 
inputs decreased 0.1 percent. (See table D.) Declines in the indexes for securities brokerage, dealing, 
investment advice, and related services; business loans (partial); electric power; natural cheese, 
except cottage cheese; chemicals and allied products wholesaling; and metals, minerals, and ores 
wholesaling outweighed increases in the indexes for gasoline, machinery and equipment parts and 
supplies wholesaling, and industrial chemicals. For the 12 months ended in October, prices for stage 
4 intermediate demand rose 0.6 percent, the largest 12-month increase since a 0.9-percent advance in 
November 2014.

Stage 3 intermediate demand: The index for stage 3 intermediate demand fell 0.7 percent in 
October following a 0.6-percent increase in September. In October, prices for total goods inputs to 
stage 3 intermediate demand moved down 0.7 percent, and the index for total services inputs 
declined 0.5 percent. Decreases in the indexes for slaughter livestock; slaughter poultry; securities 
brokerage, dealing, investment advice, and related services; raw milk; business loans (partial); and 
metals, minerals, and ores wholesaling outweighed rising prices for gasoline; jet fuel; and courier, 
messenger, and U.S. postal services. For the 12 months ended in October, the index for stage 3 
intermediate demand decreased 1.7 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand rose 0.6 percent in 
October after advancing 1.1 percent in September. In October, prices for total goods inputs to stage 2 
intermediate demand climbed 2.2 percent. In contrast, the index for total services inputs moved down 
0.5 percent. Higher prices for crude petroleum, gas fuels, plastic resins and materials, coal, corn, and 
staffing services outweighed declines in the indexes for securities brokerage, dealing, investment 
advice, and related services; iron and steel scrap; and marketing consulting services. For the 12 
months ended in October, prices for stage 2 intermediate demand rose 2.9 percent, the largest 12-
month advance since a 3.6-percent increase in February 2014.

Stage 1 intermediate demand: The index for stage 1 intermediate demand moved down 0.2 percent 
in October following a 0.6-percent rise in September. In October, prices for total services inputs to 
stage 1 intermediate demand fell 0.9 percent. Conversely, the index for total goods inputs rose 0.3 
percent. Decreases in the indexes for securities brokerage, dealing, investment advice, and related 
services; iron and steel scrap; business loans (partial); metals, minerals, and ores wholesaling; 
chemicals and allied products wholesaling; and electric power outweighed increases in prices for 
industrial chemicals, gasoline, and wireless telecommunication services. For the 12 months ended in 
October, the index for stage 1 intermediate demand moved up 0.2 percent, the first 12-month 
advance since October 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

2015

Oct.

-0.3 -0.2 -0.5 -0.6 -1.0 -0.4 -0.4 -0.2 -0.6 -0.8 -0.9 -0.6

Nov.

-0.1 -0.2 0.2 -0.4 -0.7 0.0 -1.2 -2.9 0.0 -0.8 -1.4 0.0

Dec.

-0.4 -0.8 0.0 -0.9 -2.1 0.2 -0.5 -2.4 0.7 -1.4 -2.2 -0.4

2016

Jan.

0.3 -0.3 1.0 0.1 -0.5 0.9 -0.3 -2.3 1.3 0.1 -1.2 1.5

Feb.

-0.1 -0.4 0.1 -0.8 -2.0 0.3 -0.6 -2.0 0.2 -0.8 -1.4 0.1

Mar.

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

Apr.

0.1 0.1 0.1 0.0 0.2 -0.1 0.8 2.4 -0.2 0.8 1.3 0.2

May

0.2 0.4 -0.1 0.4 0.6 0.0 1.3 3.2 0.1 1.1 2.2 -0.4

June(1)

0.5 0.6 0.5 0.8 1.2 0.4 1.2 2.6 0.2 1.0 1.0 1.0

July(1)

0.1 0.0 0.2 -0.2 -0.6 0.4 0.7 0.9 0.7 -0.2 -0.3 0.1

Aug.

0.0 0.0 0.1 -0.6 -0.7 -0.3 -0.7 -1.9 0.1 -0.3 -0.3 -0.4

Sept.

0.3 0.3 0.3 0.6 0.4 0.5 1.1 2.1 0.5 0.6 0.7 0.5

Oct.

-0.2 -0.1 -0.5 -0.7 -0.7 -0.5 0.6 2.2 -0.5 -0.2 0.3 -0.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for June 2016 have been revised to reflect the availability of late reports and corrections by respondents.

_____________
The Producer Price Index for November 2016 is scheduled to be released on Wednesday, 
December 14, 2016 at 8:30 a.m. (EST).

                                              ****
  
                                    Resampling of Industries

Effective with the release of data for October 2016, the Producer Price Index (PPI) includes data 
for 15 resampled industries classified according to the 2012 North American Industry 
Classification System (NAICS). The Bureau of Labor Statistics periodically updates the sample 
of producers providing data for the PPI to reflect current conditions more accurately when the 
structure, membership, technology, or product mix of an industry shifts. The first results of this 
systematic process were published in July 1986. Subsequent efforts have been completed at 
regular intervals.  
      
For information on specific index additions, deletions, and recodes effective October 2016, see 
the current issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201610.pdf, or 
contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 
691-7705.

NAICS
Code                    Industry
221121        Electric bulk power transmission and control
221210        Natural gas distribution
311512        Creamery butter manufacturing
311612        Meat processed from carcasses
311613        Rendering and meat byproduct processing
325180        Other basic inorganic chemical manufacturing
327390        Other concrete product manufacturing
332913        Plumbing fixture fitting and trim manufacturing
333318        Other commercial and service industry machinery manufacturing
333611        Turbine and turbine generator set units manufacturing
339910        Jewelry and silverware manufacturing
441110        New car dealers
515120        Television broadcasting
524114        Direct health and medical insurance carriers
531210        Offices of real estate agents and brokers
 
                                               ****

           Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be 
                                 Available on February 10, 2017

Each year with the release of PPI data for January, seasonal adjustment factors and relative 
importance figures are recalculated to reflect price movements from the just-completed calendar 
year. The following seasonal information will be available on February 10, 2017 (2 workdays 
prior to the release of PPI data for January 2017 on February 14):

*  Direct seasonal factors for PPI commodity indexes for the year 2017,
*  Recalculated seasonal factors for the last 5 years (2012-2016) for PPI commodity indexes, 
*  Recalculated seasonal factors for the last 5 years (2012-2016) for PPI Final Demand-
   Intermediate Demand indexes, 
*  Recalculated seasonal index data for the last 5 years (2012-2016) for Final Demand-
   Intermediate Demand and commodity indexes. This revision to seasonally adjusted indexes 
   for the previous 5 years will be posted to the PPI database on the BLS website. 

In addition, the following relative importance tables as of December 2016 will be available on 
February 10, 2017:  

*  Final demand by individual commodities
*  Final demand by component series
*  Individual commodities of intermediate demand by commodity type
*  Component series of intermediate demand by commodity type
*  Individual commodities of intermediate demand by production flow
*  Component series of intermediate demand by production flow
*  Commodities, all levels
*  Wherever-provided services and construction

To obtain this information, visit the PPI website at www.bls.gov/ppi, or 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: November 16, 2016