Producer Price Index News Release text

Transmission of material in this release is embargoed until                          USDL-14-1500
8:30 a.m. (EDT), Friday, August 15, 2014

Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov                                    
           
                        
                                 PRODUCER PRICE INDEXES - JULY 2014


The Producer Price Index for final demand rose 0.1 percent in July, seasonally adjusted, the U.S. 
Bureau of Labor Statistics reported today. This increase followed a 0.4-percent advance in June 
and a 0.2-percent decline in May. On an unadjusted basis, the index for final demand climbed 1.7 
percent for the 12 months ended in July. (See table A.)

In July, the 0.1-percent increase in final demand prices can be traced to the index for final 
demand services, which also rose 0.1 percent. Prices for final demand goods were unchanged. 

Within intermediate demand, prices for processed goods advanced 0.1 percent, the index for 
unprocessed goods dropped 2.7 percent, and prices for services moved up 0.3 percent. (See 
tables B and C.)

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

2013

July

0.3 0.1 0.3 -0.1 0.0 0.5 1.0 0.7 0.0 2.0

Aug.

-0.1 0.0 -0.6 0.7 0.0 -0.1 -0.6 0.1 0.2 1.7

Sept.

0.1 -0.1 -0.7 0.2 0.0 0.2 0.4 -0.1 0.1 1.1

Oct.

0.3 0.1 0.3 0.0 0.0 0.3 0.2 0.3 0.3 1.3

Nov.

0.0 -0.1 -0.2 -0.6 0.1 0.0 0.2 -0.5 0.1 1.1

Dec.

0.0 0.4 -0.2 1.2 0.4 -0.2 -1.0 1.6 0.1 1.2

2014

Jan.

0.3 0.5 0.7 0.6 0.5 0.1 0.0 -0.9 0.2 1.3

Feb.

0.2 0.2 0.7 -0.3 0.2 0.3 0.6 -0.4 0.1 1.2

Mar.(1)

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

Apr.(1)

0.5 0.5 2.3 -0.2 0.3 0.4 0.8 0.6 0.2 2.1

May

-0.2 -0.2 -0.2 -0.2 0.0 -0.2 -0.5 0.9 -0.1 2.0

June

0.4 0.5 -0.2 2.1 0.1 0.3 0.2 0.3 0.3 1.9

July

0.1 0.0 0.4 -0.6 0.2 0.1 0.2 0.5 0.0 1.7

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

Final Demand

(Final demand includes goods, services, and construction which are sold for personal 
consumption, capital investment, government purchases, and export. See table 4 for product 
detail.)

Final demand services:  The index for final demand services inched up 0.1 percent in July after 
rising 0.3 percent in the prior month. Leading the July increase, the index for final demand 
transportation and warehousing services moved up 0.5 percent. Margins for final demand trade 
services advanced 0.2 percent. (Trade indexes measure changes in margins received by 
wholesalers and retailers.) The index for final demand services less trade, transportation, and 
warehousing was unchanged.

Product detail:  In July, prices for truck transportation of freight climbed 0.7 percent. Margins 
for automotive fuels and lubricants retailing and for apparel, footwear, and accessories retailing 
increased. The indexes for portfolio management and passenger car rental also moved higher. In 
contrast, margins for machinery and equipment wholesaling fell 1.7 percent in July. The indexes 
for loan services (partial); apparel wholesaling; and health, beauty, and optical goods retailing 
also decreased. (See table 4.)

Final demand goods:  Prices for final demand goods were unchanged in July after moving up 
0.5 percent in June. In July, a 0.2-percent rise in the index for final demand goods less foods and 
energy and a 0.4-percent increase in prices for final demand foods offset a 0.6-percent decline in 
the index for final demand energy.

Product detail:  In July, among prices for final demand goods, the index for pharmaceutical 
preparations rose 1.0 percent. Prices for meats, processed poultry, residential electric power, and 
light motor trucks also moved higher. Conversely, gasoline prices fell 2.1 percent in July. The 
indexes for soybeans, fresh and dry vegetables, grains, and gold and platinum jewelry also 
decreased.

Special grouping, Final demand less foods, energy, and trade:  Prices for final demand less 
foods, energy, and trade services rose 0.2 in July following a 0.2-percent advance in June and no 
change in May. (The index for final demand less foods, energy, and trade services represents 
about two-thirds of final demand.)

Special grouping, Finished goods:  Prices for finished goods inched up 0.1 percent in July after 
a 0.7-percent advance in June. (The finished goods index represents about two-thirds of final 
demand goods, through the exclusion of the weight for government purchases and exports. The 
finished goods index represents about one-quarter of overall final demand.) The July increase 
was led by prices for finished consumer foods, which climbed 1.0 percent. The index for finished 
goods less foods and energy edged up 0.1 percent. In contrast, prices for finished consumer 
energy goods declined 0.7 percent. Within finished goods, rising prices for meats, residential 
electric power, processed poultry, pharmaceutical preparations, and light motor trucks 
outweighed falling prices for gasoline, fresh and dry vegetables, residential natural gas, and gold 
and platinum jewelry.

Intermediate Demand
(Intermediate demand includes goods, services, and maintenance and repair construction sold to 
businesses, excluding capital investment. BLS publishes two parallel treatments of intermediate 
demand, each constructed from the identical set of commodity price indexes. The first treatment 
organizes commodities according to commodity type, and the second organizes commodities 
using a stage-based, production flow model. See the technical note for more information.)

Intermediate Demand by Commodity Type

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand edged up 0.1 percent in July following a 0.4-percent increase in June. Leading the July 
advance, prices for processed materials less foods and energy rose 0.3 percent. Also contributing, 
but to a lesser extent, the index for processed foods and feeds moved up 0.4 percent. Conversely, 
prices for processed energy goods declined 0.3 percent. For the 12 months ended in July, prices 
for processed goods for intermediate demand rose 1.6 percent, the largest 12-month advance 
since a 2.9-percent increase in March 2012. (See table B.)

Product detail:  Accounting for over three-quarters of the July increase in the index for 
processed goods for intermediate demand, prices for primary basic organic chemicals moved up 
3.9 percent. The indexes for meats, nonferrous metals, diesel fuel, and electric power also 
advanced. In contrast, gasoline prices moved down 2.1 percent in July. The indexes for natural 
gas to electric utilities, prepared animal feeds, and ethanol also declined. (See table 5.)

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.)

2013

July

0.0 1.6 0.3 -0.2 1.3 0.2 -0.7 0.9 -0.1 8.5

Aug.

0.0 -2.3 0.6 0.2 0.4 -1.4 -3.4 -0.5 0.0 1.9

Sept.

0.1 0.5 0.3 -0.1 -0.6 -0.1 -0.7 1.0 -1.2 0.5

Oct.

-0.1 -1.8 0.0 0.1 -0.8 -0.5 1.1 -1.8 -0.6 -0.5

Nov.

-0.3 -0.9 -0.9 -0.1 -0.4 -1.7 -0.6 -4.0 1.0 -3.0

Dec.

0.4 0.7 1.2 0.1 0.1 2.2 -0.6 5.3 1.1 -1.9

2014

Jan.

0.7 1.2 1.5 0.4 0.5 0.9 3.6 -1.7 1.8 -0.5

Feb.

0.3 1.0 0.2 0.4 -0.2 5.1 0.6 13.4 -1.2 5.1

Mar.(1)

0.0 1.3 -0.4 -0.2 0.7 -0.2 7.2 -6.4 -0.5 5.3

Apr.(1)

0.0 2.9 -1.6 0.3 1.5 0.8 3.7 -2.8 1.8 6.5

May

-0.1 -0.2 0.3 -0.2 1.3 0.0 -2.3 2.7 -0.7 4.4

June

0.4 -0.1 1.3 0.1 1.5 -0.9 -3.0 1.2 -1.1 3.9

July

0.1 0.4 -0.3 0.3 1.6 -2.7 -0.4 -6.4 0.0 0.9

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

Unprocessed goods for intermediate demand:  The index for unprocessed goods for 
intermediate demand moved down 2.7 percent in July, the largest decline since falling 3.3 
percent in June 2012. The decrease in July was led by prices for unprocessed energy materials, 
which dropped 6.4 percent. The index for unprocessed foodstuffs and feedstuffs moved down 0.4 
percent. Prices for unprocessed nonfood materials less energy were unchanged. For the 12 
months ended in July, the index for unprocessed goods for intermediate demand rose 0.9 percent, 
the smallest 12-month change since a 0.5-percent decline in January 2014.

Product detail:  In July, over two-thirds of the decline in the index for unprocessed goods for 
intermediate demand can be traced to crude petroleum prices, which fell 8.0 percent. The indexes 
for grains, soybeans, natural gas, ungraded chicken eggs, and wastepaper also decreased. In 
contrast, prices for slaughter livestock increased 7.9 percent. The indexes for nonferrous metals 
and unprocessed finfish also advanced.

Services for intermediate demand:  The index for services for intermediate demand increased 
0.3 percent in July after rising 0.6 percent in June. In July, nearly 70 percent of the broad-based 
advance can be traced to prices for services less trade, transportation, and warehousing for 
intermediate demand, which moved up 0.3 percent. A 0.5-percent increase in the index for 
transportation and warehousing services for intermediate demand and a 0.1-percent rise in 
margins for trade services for intermediate demand also contributed to the advance. For the 12 
months ended in July, the index for services for intermediate demand increased 1.7 percent. (See 
table C.) 

Product detail:  In July, about 30 percent of the rise in the index for services for intermediate 
demand can be traced to a 5.6-percent jump in prices for television advertising time sales. The 
indexes for portfolio management; passenger car rental; services related to securities brokerage 
and dealing; courier, messenger, and U.S. postal services; and paper and plastics products 
wholesaling also increased. Conversely, prices for loan services (partial) fell 2.1 percent in July. 
The indexes for parts and supplies for machinery and equipment wholesaling and for services 
related to air transportation 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.)

2013

July

0.1 0.6 0.4 0.0 1.9

Aug.

0.2 -0.3 0.3 0.3 2.1

Sept.

0.1 0.7 0.2 -0.1 1.8

Oct.

0.2 -0.3 0.3 0.2 1.2

Nov.

0.2 0.8 0.0 0.1 0.9

Dec.

-0.2 -0.5 0.5 -0.2 1.0

2014

Jan.

0.3 -0.2 -0.3 0.6 1.1

Feb.

0.2 0.1 0.9 0.0 1.4

Mar.(1)

0.4 0.3 0.2 0.4 1.7

Apr.(1)

-0.1 -0.1 0.2 -0.1 1.2

May

-0.4 -0.7 0.4 -0.5 1.2

June

0.6 1.3 0.3 0.5 1.5

July

0.3 0.1 0.5 0.3 1.7

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for March 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 stage 4 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to final 
demand.):  The index for stage 4 intermediate demand advanced 0.2 percent in July. Prices for 
total services inputs to stage 4 intermediate demand rose 0.3 percent, and the index for total 
goods inputs moved up 0.1 percent. (See table D.) Increases in prices for portfolio management, 
meats, services related to securities brokerage and dealing, passenger car rental, diesel fuel, and 
processed poultry outweighed declines in the indexes for grains, loan services (partial), and 
gasoline. (See table 6.) For the 12 months ended in July, the index for stage 4 intermediate 
demand rose 1.5 percent.

Stage 3 intermediate demand (The stage 3 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to industries 
classified in stage 4.):  Prices for stage 3 intermediate demand moved up 0.6 percent in July, the 
largest advance since a 1.0-percent increase in March 2014. In July, the index for total goods 
inputs to stage 3 intermediate demand rose 0.7 percent, and the index for total services inputs 
advanced 0.4 percent. Higher prices for slaughter livestock; slaughter poultry; television 
advertising time sales; courier, messenger, and U.S. postal services; unprocessed finfish; and 
diesel fuel outweighed decreases in the indexes for ungraded chicken eggs, grains, and loan 
services (partial). For the 12 months ended in July, the index for stage 3 intermediate demand 
climbed 3.6 percent, the largest 12-month advance since a 4.3-percent increase in January 2012.

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

2013

July

0.2 0.1 0.2 -0.3 -0.3 -0.2 0.4 0.6 0.2 0.4 0.0 0.6

Aug.

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

Sept.

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

Oct.

0.2 0.0 0.3 0.2 0.4 -0.1 -0.9 -1.4 -0.2 -0.1 -0.4 0.5

Nov.

0.0 -0.3 0.2 0.1 -0.1 0.2 -1.3 -2.5 0.3 0.2 0.2 0.2

Dec.

0.1 0.4 -0.1 0.0 0.2 -0.1 1.4 2.8 -0.3 0.5 0.8 0.0

2014

Jan.

0.3 0.5 0.2 1.1 1.5 0.5 0.3 0.1 0.6 1.2 2.1 0.1

Feb.

0.2 0.1 0.1 0.4 0.6 0.4 3.8 6.3 0.3 0.0 -0.2 0.3

Mar.(1)

0.3 0.2 0.6 1.0 1.6 0.2 -2.0 -3.5 0.0 -0.3 -1.0 0.5

Apr.(1)

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

May

-0.3 -0.1 -0.4 -0.3 -0.7 -0.1 0.3 1.0 -0.4 -0.6 -0.6 -0.6

June

0.5 0.3 0.6 0.1 0.0 0.3 0.4 0.3 0.6 0.5 0.4 0.6

July

0.2 0.1 0.3 0.6 0.7 0.4 -1.7 -3.1 0.2 0.7 0.7 0.5

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

Stage 2 intermediate demand (The stage 2 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to industries 
classified in stage 3.):  The index for stage 2 intermediate demand fell 1.7 percent in July, the 
largest decrease since a 2.0- percent drop in March 2014. In July, prices for total goods inputs to 
stage 2 intermediate demand declined 3.1 percent. In contrast, the index for total services inputs 
rose 0.2 percent. Decreases in the indexes for crude petroleum, natural gas, grains, prepared 
animal feeds, loan services (partial), and soybeans outweighed advances for television 
advertising time sales, primary basic organic chemicals, and nonferrous metals. For the 12 
months ended in July, the index for stage 2 intermediate demand moved down 0.6 percent, the 
largest 12-month decline since a 1.3-percent decrease in November 2013.

Stage 1 intermediate demand (The stage 1 intermediate demand index measures price 
changes for products purchased by industries that primarily produce output sold to industries 
classified in stage 2.):  The index for stage 1 intermediate demand increased 0.7 percent in July, 
the largest rise since a 1.2-percent advance in January 2014. In July, prices for total goods inputs 
to stage 1 intermediate demand rose 0.7 percent, and the index for total services inputs moved up 
0.5 percent. Increases in the indexes for primary basic organic chemicals, industrial electric 
power, nonferrous metals, portfolio management, services related to securities brokerage and 
dealing, and diesel fuel outweighed falling prices for gasoline; industrial natural gas; and 
securities brokerage, dealing, and investment advice. For the 12 months ended in July, the index 
for stage 1 intermediate demand jumped 2.3 percent, the largest 12-month rise since a 2.5-
percent advance in January 2012.
____________
The Producer Price Index for August 2014 is scheduled to be released on Tuesday, 
September 16, 2014 at 8:30 a.m. (EDT).

                                               *****

                                      Resampling of Industries

Effective with the release of data for July 2014, the Producer Price Index (PPI) includes data for 
47 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 
July 2014 issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201407.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
212111        Bituminous coal and lignite surface mining
212112        Bituminous coal underground mining
212230        Copper, nickel, lead and zinc mining*
212324        Kaolin and ball clay mining
212391        Potash, soda, and borate mineral mining
236222        New school building construction
311811        Retail bakeries
312130        Wineries
312230        Tobacco manufacturing
316992        Women's handbag and purse manufacturing
321212        Softwood veneer and plywood manufacturing
322110        Pulp mills
322122        Newsprint mills
323117        Books printing
325199        All other basic organic chemical manufacturing
325998        Other miscellaneous chemical product manufacturing
332439        Other metal container manufacturing
333314        Optical instrument and lens manufacturing
333414        Heating equipment (except warm air furnaces) manufacturing
333519        Rolling mill and other metalworking machinery manufacturing
334290        Other communications equipment manufacturing
334412        Bare printed circuit board manufacturing
334514        Totalizing fluid meters and counting devices manufacturing
334519        Other measuring and controlling device manufacturing
335228        Other major household appliance manufacturing
335931        Current-carrying wiring device manufacturing
336214        Travel trailer and camper manufacturing
336991        Motorcycle, bicycle, and parts manufacturing
337215        Showcases, partitions, shelving, and lockers manufacturing
339994        Broom, brush, and mop manufacturing
445310        Beer, wine, and liquor stores
446110        Pharmacies and drug stores
451211        Book stores
453110        Florists
453220        Gift, novelty, and souvenir stores
488119        Other airport operations
488190        Other support activities for air transportation
621111        Offices of physicians, except mental health
621210        Offices of dentists
621511        Medical laboratories
621512        Diagnostic imaging centers
621610        Home health care services
622110        General medical and surgical hospitals
622210        Psychiatric and substance abuse hospitals
622310        Other specialty hospitals
623110        Nursing care facilities
623210        Residential developmental disability homes

* Combines data formerly included under NAICS 212231 (Lead ore and zinc ore mining) and 
NAICS 212234 (Copper ore and nickel ore mining).




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Last Modified Date: August 15, 2014