Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL-15-0255
8:30 a.m. (EST), Wednesday, February 18, 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 - JANUARY 2015


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

In January, the 0.8-percent decline in final demand prices can be traced primarily to a 2.1-percent 
decrease in the index for final demand goods. Prices for final demand services fell 0.2 percent.

Within intermediate demand, the index for processed goods declined 2.8 percent, prices for 
unprocessed goods dropped 9.4 percent, and the index for services moved down 0.2 percent. (See 
tables B and C.)

Final Demand

Final demand goods:  The index for final demand goods moved down 2.1 percent in January, the 
seventh consecutive decrease. Leading the broad-based decline in January, prices for final demand 
energy fell 10.3 percent. The indexes for final demand foods and for final demand goods less foods 
and energy moved down 1.1 percent and 0.2 percent, respectively.

Product detail:  The decline in prices for final demand goods was led by the index for gasoline, 
which dropped 24.0 percent. Prices for diesel fuel, jet fuel, basic organic chemicals, dairy products, 
and home heating oil also moved lower. Conversely, the index for residential electric power moved 
up 1.2 percent. Prices for pharmaceutical preparations and for fresh and dry vegetables also 
advanced. (See table 4.)

Final demand services:  The index for final demand services decreased 0.2 percent in January, the 
first decline since falling 0.3 percent in September 2014. In January, prices for final demand services 
less trade, transportation, and warehousing moved down 0.4 percent, and the index for final demand 
transportation and warehousing services dropped 0.8 percent. In contrast, margins for final demand 
trade services advanced 0.5 percent. (Trade indexes measure changes in margins received by 
wholesalers and retailers.)

Product detail:  In January, a major contributor to the decline in the index for final demand services 
was prices for outpatient care (partial), which fell 0.7 percent. The indexes for automotive fuels and 
lubricants retailing; securities brokerage, dealing, investment advice, and related services; television, 
video, and photographic equipment and supplies retailing; mining services; and truck transportation 
of freight also decreased. Conversely, margins for apparel, jewelry, footwear, and accessories 
retailing advanced 3.6 percent. The indexes for machinery, equipment, parts, and supplies 
wholesaling and for loan services (partial) 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

Jan.

0.3 0.5 0.7 0.8 0.5 0.2 0.2 -0.8 0.2 1.3

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.

0.2 -0.4 0.7 -2.5 -0.1 0.5 1.6 0.2 -0.1 1.5

Nov.

-0.2 -0.7 0.0 -3.8 0.0 0.2 0.2 -0.3 0.3 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

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2014. In addition, indexes for September 2014 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Special grouping, Final demand less foods, energy, and trade:  The index for final demand less 
foods, energy, and trade services moved down 0.3 percent after edging up 0.1 percent in December. 
For the 12 months ended in January, prices for final demand less foods, energy, and trade services 
climbed 0.9 percent.

Intermediate Demand by Commodity Type

Processed goods for intermediate demand:  The index for processed goods for intermediate 
demand fell 2.8 percent in January, the largest decline since a 4.1-percent drop in December 2008. 
More than half of the broad-based January decrease is attributable to prices for processed energy 
goods, which moved down 8.3 percent. In addition, the index for processed materials less foods and 
energy fell 1.3 percent, and prices for processed foods and feeds declined 2.5 percent. For the 12 
months ended in January, the index for processed goods for intermediate demand moved down 5.5 
percent, the largest 12-month drop since a 7.7-percent decrease in October 2009. (See table B.)

Product detail:  In January, a 19.2-percent decline in diesel fuel prices was a major factor in the 
decrease in the index for processed goods for intermediate demand. Prices for basic organic 
chemicals, gasoline, jet fuel, plastic resins and materials, and dairy products also moved lower. In 
contrast, the electric power index increased 1.3 percent. Prices for basic inorganic chemicals and 
formula feeds also advanced. (See table 5.)

Unprocessed goods for intermediate demand:  The index for unprocessed goods for intermediate 
demand fell 9.4 percent in January, the largest drop since a 13.2-percent decrease in November 2008. 
About 90 percent of the broad-based decline in January can be traced to prices for unprocessed 
energy materials, which decreased 23.6 percent. The index for unprocessed foodstuffs and feedstuffs 
moved down 1.8 percent, and prices for unprocessed nonfood materials less energy fell 0.7 percent. 
For the 12 months ended in January, the index for unprocessed goods for intermediate demand 
declined 18.4 percent, the largest 12-month drop since a 31.7-percent decrease in September 2009.

Product detail:  More than half of the January decline in the index for unprocessed goods for 
intermediate demand is attributable to prices for crude petroleum, which fell 30.6 percent. Prices for 
natural gas, slaughter hogs, raw milk, grains, and nonferrous scrap also moved lower. Conversely, 
the index for slaughter poultry rose 5.5 percent. Prices for unprocessed finfish and gold ores 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

Jan.

0.7 1.2 1.8 0.4 0.5 1.9 3.7 0.5 1.9 -0.5

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.

-0.7 -1.6 -2.8 0.0 0.4 -3.2 0.3 -7.1 -2.4 -1.9

Nov.

-1.0 0.1 -3.6 -0.5 -0.3 -1.4 1.6 -4.7 -1.7 -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

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2014. In addition, indexes for September 2014 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Services for intermediate demand:  The index for services for intermediate demand moved down 
0.2 percent in January, the largest decrease since falling 0.2 percent in April 2014. The decline in 
January was led by the index for services less trade, transportation, and warehousing for intermediate 
demand, which dropped 0.4 percent. Prices for transportation and warehousing services for 
intermediate demand fell 0.3 percent. In contrast, the index for trade services for intermediate 
demand rose 0.7 percent. (See table C.)

Product detail:  In January, prices for securities brokerage, dealing, investment advice, and related 
services declined 4.5 percent. The indexes for television advertising time sales, radio advertising time 
sales, legal services, marketing consulting services, and truck transportation of freight also decreased. 
Conversely, margins for parts and supplies for machinery and equipment wholesaling advanced 1.0 
percent. The indexes for business loans (partial) and staffing services 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.)

2014

Jan.

0.4 -0.1 -0.2 0.5 1.1

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.

0.2 0.4 0.0 0.2 1.6

Nov.

0.2 0.0 -0.1 0.5 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

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2014. In addition, indexes for September 2014 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Intermediate Demand by Production Flow

Stage 4 intermediate demand:  The index for stage 4 intermediate demand moved down 0.7 percent 
in January, the fifth consecutive decline. In January, prices for total goods inputs to stage 4 
intermediate demand decreased 1.3 percent. The index for total services inputs was unchanged. (See 
table D.) Lower prices for diesel fuel; gasoline; securities brokerage, dealing, investment advice, and 
related services; basic organic chemicals; dairy products; and asphalt outweighed increases in the 
indexes for business loans (partial), electric power, and parts and supplies for machinery and 
equipment wholesaling. (See table 6.) For the 12 months ended in January, prices for stage 4 
intermediate demand fell 0.5 percent.

Stage 3 intermediate demand:  Prices for stage 3 intermediate demand fell 2.4 percent in January, 
the fourth straight decrease. In January, the index for total goods inputs to stage 3 intermediate 
demand dropped 4.2 percent, and prices for total services inputs edged down 0.1 percent. Falling 
prices for gasoline; jet fuel; basic organic chemicals; slaughter hogs; diesel fuel; and securities 
brokerage, dealing, investment advice, and related services outweighed increases in the indexes for 
slaughter poultry, business loans (partial), and unprocessed finfish. For the 12 months ended in 
January, the index for stage 3 intermediate demand fell 3.3 percent.

Stage 2 intermediate demand:  The index for stage 2 intermediate demand dropped 5.0 percent in 
January, the eleventh consecutive decline. In January, prices for total goods inputs to stage 2 
intermediate demand fell 9.8 percent, and the index for total services inputs moved down 0.5 percent. 
Lower prices for crude petroleum; gas fuels; plastic resins and materials; securities brokerage, 
dealing, investment advice, and related services; basic organic chemicals; and lubricating oil base 
stocks outweighed increases in the indexes for staffing services, formula feeds, and basic inorganic 
chemicals. For the 12 months ended in January, prices for stage 2 intermediate demand dropped 11.0 
percent.

Stage 1 intermediate demand:  The index for stage 1 intermediate demand declined 3.3 percent in 
January, the fifth straight decrease. In January, prices for total goods inputs to stage 1 intermediate 
demand dropped 5.7 percent. The index for total services inputs was unchanged. Lower prices for 
basic organic chemicals; diesel fuel; gasoline; crude petroleum; gas fuels; and securities brokerage, 
dealing, investment advice, and related services outweighed advances in the indexes for business 
loans (partial), electric power, and chemicals and allied products wholesaling. For the 12 months 
ended in January, the index for stage 1 intermediate demand decreased 6.3 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

Jan.

0.4 0.4 0.2 1.1 1.6 0.6 0.8 1.0 0.6 1.3 2.3 0.1

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.

-0.2 -0.5 0.1 -0.3 -0.6 0.2 -2.2 -4.3 0.5 -0.4 -0.9 0.3

Nov.

-0.2 -0.5 0.1 -0.3 -0.9 0.3 -1.2 -2.4 0.4 -1.4 -2.4 -0.1

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

NOTE: Some of the percent changes shown here and elsewhere in this release may differ from those previously reported because seasonal adjustment factors have been recalculated to reflect developments during 2014. In addition, indexes for September 2014 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

_____________
The Producer Price Index for February 2015 is scheduled to be released on Friday, March 13, 
2015 at 8:30 a.m. (EDT).
                                           *****


          PPI Updates Commodity Weight Allocations for the Final Demand-Intermediate Demand 
                                   Aggregation Structure

Effective with this release, the Bureau of Labor Statistics has updated the weight allocations used to 
calculate the Producer Price Index (PPI) Final Demand-Intermediate Demand (FD-ID) indexes to 
more accurately reflect recent sales patterns. While PPI commodity index weights continue to be 
based on shipment values from the 2007 economic census, the proportions of these weights allocated 
to the various FD-ID categories have changed. The new allocations are based primarily on data from 
the 2007 Input-Output Accounts produced by the Bureau of Economic Analysis.

It is important to note that this allocation update did not change the PPI commodity classification 
system, reference base, the FD-ID aggregation structure, or historical index data. It has, however, 
resulted in some significant shifts in the relative importance figures of commodity components that 
make up the FD-ID indexes. 

Relative importance figures as of December 2014, which detail this shift from 2002 to 2007 input-
output relationships, are available on the PPI website at www.bls.gov/ppi. A detailed analysis of the 
PPI weight allocation update also is being posted the PPI homepage. This information also may be 
requested from the Division of Industrial Prices and Price Indexes, Section of Index Analysis and 
Public Information through e-mail to ppi-info@bls.gov or by calling (202) 691-7705. For further 
information on this update, contact Jonathan Weinhagen at weinhagen.jonathan@bls.gov or (202) 
691-7709.                         

                                          *****

                                Resampling of Industries

Effective with this release, the Producer Price Index (PPI) includes data for 28 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 6-month intervals.  
      
For information on specific index additions, deletions, and recodes effective this month, see the 
January 2015 issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201501.pdf, or 
contact the PPI's Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-
7705.

NAICS
Code                    Industry
113310        Logging
212312        Crushed and broken limestone mining
212313        Crushed and broken granite mining
313320        Fabric coating mills
315990        Apparel accessories and other apparel manufacturing
322121        Paper, except newsprint, mills
322130        Paperboard mills
325311        Nitrogenous fertilizer manufacturing
325312        Phosphatic fertilizer manufacturing
325314        Fertilizer, mixing only, manufacturing
325413        In-vitro diagnostic substance manufacturing
327992        Ground or treated minerals and earths manufacturing
333316        Photographic and photocopying equipment manufacturing
333995        Fluid power cylinder and actuator manufacturing
333996        Fluid power pump and motor manufacturing
335312        Motor and generator manufacturing
336213        Motor home manufacturing
339940        Office supplies (except paper) manufacturing
429930        Material recyclers
446191        Food (health) supplement stores
447190        Other gasoline stations
448320        Luggage and leather goods stores
451130        Sewing, needlework, and piece goods stores
481112        Scheduled freight air transportation
511120        Periodical publishers
515210        Cable and other subscription programming
541110        Offices of lawyers
621111        Offices of physicians, except mental health

                                         *****


                           Recalculation of Seasonal Adjustment Factors

Effective with this release, seasonal adjustment factors have been recalculated to reflect price-
movement patterns during 2014 for the Final Demand-Intermediate Demand (FD-ID) System and 
commodity-grouping indexes. This routine annual recalculation may affect previously published 
seasonally adjusted indexes and percent changes for January 2010 through December 2014. 

Revised seasonally adjusted data for this period, as well as seasonal adjustment factors for directly 
adjusted commodity indexes to be used through December 2015, were released February 13, 2015. 
To obtain this information, contact the Division of Industrial Prices and Price Indexes, Section of 
Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705, or visit the Producer 
Price Index homepage at www.bls.gov/ppi.

Tables E and F below provide monthly seasonally adjusted percent changes for major FD-ID system 
indexes in 2014, based on former and recalculated seasonal factors. These percent changes include 
final price data through August 2014 and may differ from values shown in tables A through D of this 
release, which include final price data through September 2014.

Table E.  Over-the-month percent changes in major final demand indexes, seasonally adjusted, using 
former and recalculated seasonal factors for 2014

                Final demand          Final demand goods       Final demand services
Month      Former   Recalculated     Former   Recalculated     Former   Recalculated
January      0.3         0.3           0.5         0.5           0.1         0.2
February      .2          .2            .2          .1            .3          .2
March         .3          .3            .1          .3            .4          .5
April         .2          .1            .4          .3            .0         -.1
May           .2          .3            .0          .1            .3          .4
June          .2          .1            .5          .3            .0         -.1
July          .5          .3           -.1         -.1            .6          .6
August       -.2         -.1           -.3         -.3            .0         -.1
September    -.2         -.2           -.3         -.1           -.2         -.2
October       .2          .2           -.4         -.4            .5          .5
November     -.2         -.2           -.7         -.7            .1          .2
December     -.3         -.2          -1.2        -1.1            .2          .3


Table F.  Over-the-month percent changes in major intermediate demand indexes, seasonally adjusted, 
using former and recalculated seasonal factors for 2014

            Processed goods for      Unprocessed goods for         Services for
            Intermediate demand       intermediate demand       intermediate demand
Month      Former   Recalculated     Former   Recalculated     Former   Recalculated
January      0.7         0.7           0.9         1.9           0.3         0.4
February      .3          .2           5.1         4.6            .2          .1
March         .0          .0           -.2          .4            .4          .4
April         .0          .0            .8         1.1           -.2         -.2
May           .0          .1           -.3        -1.1           -.1          .0
June          .3          .1           -.9        -1.1            .2          .1
July          .1          .1          -2.4        -1.7            .6          .6
August       -.1         -.1          -3.1        -3.0            .1          .0
September     .0         -.1            .3          .1           -.1         -.1
October      -.9         -.8          -2.4        -3.2            .1          .2
November    -1.0        -1.0          -1.3        -1.4            .3          .2
December    -1.7        -1.6          -5.0        -4.6            .0          .1


                                            *****
	


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Last Modified Date: February 18, 2015