Producer Price Index News Release

Transmission of material in this release is embargoed until                          USDL 25-0176
8:30 a.m. (ET) Thursday, February 13, 2025

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 2025


The Producer Price Index for final demand increased 0.4 percent in January, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.5 percent in 
December 2024 and 0.2 percent in November. (See table A.) On an unadjusted basis, the index 
for final demand moved up 3.5 percent for the 12 months ended January 2025.

Leading the broad-based January advance in the index for final demand, prices for final demand 
services rose 0.3 percent. The index for final demand goods moved up 0.6 percent. 

The index for final demand less foods, energy, and trade services rose 0.3 percent in January 
after moving up 0.4 percent in December. For the 12 months ended in January, prices for final 
demand less foods, energy, and trade services advanced 3.4 percent. 

Final Demand

Final demand services: The index for final demand services moved up 0.3 percent in January, the 
sixth consecutive increase. Three-fourths of the broad-based advance in January is attributable to 
prices for final demand services less trade, transportation, and warehousing, which rose 0.4 percent. 
The indexes for final demand transportation and warehousing services and for final demand trade 
services also increased, 0.6 percent and 0.1 percent, respectively. (Trade indexes measure changes in 
margins received by wholesalers and retailers.)

Product detail: Over one-third of the January rise in the index for final demand services can be 
traced to prices for traveler accommodation services, which advanced 5.7 percent. The indexes for 
automobile retailing (partial); truck transportation of freight; food and alcohol retailing; apparel, 
jewelry, footwear, and accessories retailing; and bundled wired telecommunications access services 
also moved higher. In contrast, margins for fuels and lubricants retailing fell 9.8 percent. Prices for 
securities brokerage, dealing, investment advice, and related services and for physician care also 
declined. (See table 2.)

Final demand goods: The index for final demand goods moved up 0.6 percent in January, the fourth 
consecutive rise. Over half of the broad-based January advance can be traced to a 1.7-percent 
increase in prices for final demand energy. The indexes for final demand foods and for final demand 
goods less foods and energy also rose, 1.1 percent and 0.1 percent, respectively.

Product detail: In January, a 10.4-percent increase in the index for diesel fuel was a major factor in 
the advance in prices for final demand goods. The indexes for chicken eggs, beef and veal, gas fuels, 
jet fuel, and communication and related equipment also moved higher. Conversely, prices for fresh 
and dry vegetables fell 22.3 percent. The indexes for pharmaceutical preparations and for residential 
electric power also decreased.

Intermediate Demand by Commodity Type

Within intermediate demand in January, the index for processed goods increased 1.0 percent, prices for 
unprocessed goods jumped 5.5 percent, and the index for services fell 0.2 percent. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand moved 
up 1.0 percent in January, the largest increase since a 1.1-percent rise in February 2024. Nearly two-thirds 
of the broad-based January advance can be attributed to a 3.5-percent jump in the index for processed 
energy goods. Prices for processed materials less foods and energy and for processed foods and feeds also 
moved higher, 0.4 percent and 0.8 percent, respectively. For the 12 months ended in January, the index for 
processed goods for intermediate demand advanced 1.0 percent, the largest 12-month increase since rising 
2.1 percent in February 2023. 

Product detail: More than one-third of the January advance in the index for processed goods for 
intermediate demand can be traced to a 10.4-percent jump in prices for diesel fuel. The indexes for hot 
rolled steel bars, plates, and structural shapes; primary basic organic chemicals; utility natural gas; 
liquefied petroleum gas; and beef and veal also increased. In contrast, prices for industrial electric power 
fell 1.2 percent. The indexes for softwood lumber (not edge worked) and for confectionery materials also 
declined.

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate demand 
moved up 5.5 percent in January, the largest advance since rising 5.6 percent in May 2022. Leading the 
broad-based January increase, the index for unprocessed energy materials jumped 13.0 percent. Prices for 
unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy also moved 
higher, 0.9 percent and 1.4 percent, respectively. For the 12 months ended in January, the index for 
unprocessed goods for intermediate demand rose 8.7 percent, the largest 12-month increase since a 10.7-
percent jump in December 2022.

Product detail: Nearly two-thirds of the January advance in the index for unprocessed goods for 
intermediate demand can be attributed to a 14.8-percent jump in prices for crude petroleum. The indexes 
for natural gas, livestock, corn, nonferrous metal ores, and ungraded chicken eggs also rose. Conversely, 
prices for fresh fruits and melons dropped 13.7 percent. The indexes for carbon steel scrap and for coal 
also decreased. 

Services for intermediate demand: In January, prices for services for intermediate demand fell 0.2 
percent after rising 0.5 percent in December. A major factor in the decrease was the index for 
services less trade, transportation, and warehousing for intermediate demand, which declined 0.3 
percent. Margins for trade services for intermediate demand moved down 0.2 percent. In contrast, 
prices for transportation and warehousing services for intermediate demand advanced 0.4 percent. 
For the 12 months ended in January, the index for services for intermediate demand increased 2.1 
percent.

Product detail: Leading the January decline in the index for services for intermediate demand, prices 
for business loans (partial) dropped 7.7 percent. The indexes for securities brokerage, dealing, 
investment advice, and related services; radio advertising time sales; fuels and lubricants retailing; 
broadcast and network television advertising time sales; and ground courier and messenger services 
also fell. Conversely, prices for truck transportation of freight increased 1.3 percent. The indexes for 
machinery and equipment parts and supplies wholesaling and for investment banking also moved up.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand rose 0.2 percent in January, 
the fourth consecutive advance. In January, the index for total goods inputs to stage 4 intermediate 
demand moved up 0.4 percent, while prices for total services inputs were unchanged. (See table D.) 
Increases in the indexes for diesel fuel; machinery and equipment parts and supplies wholesaling; 
investment banking; warehousing, storage, and related services; beef and veal; and paving mixtures 
and blocks outweighed declining prices for business loans (partial); securities brokerage, dealing, 
investment advice, and related services; and fresh fruits and melons. For the 12 months ended in 
January, the index for stage 4 intermediate demand advanced 2.1 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand increased 0.6 percent in 
January, the largest rise since moving up 0.7 percent in July 2024. In January, the index for total 
goods inputs to stage 3 intermediate demand advanced 1.5 percent. In contrast, prices for total 
services inputs edged down 0.1 percent. Increases in the indexes for diesel fuel; livestock; jet fuel; 
cable network advertising time sales; corn; and warehousing, storage, and related services 
outweighed lower prices for business loans (partial), slaughter chickens, and raw milk. For the 12 
months ended in January, the index for stage 3 intermediate demand moved up 2.0 percent, the 
largest 12-month advance since a 2.2-percent rise in July 2024.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand advanced 1.9 percent in 
January, the largest rise since moving up 1.9 percent in July 2023. In January, the index for total 
goods inputs to stage 2 intermediate demand jumped 5.7 percent. Conversely, prices for total services 
inputs declined 0.8 percent. Higher prices for crude petroleum, gas fuels, oilseeds, traveler 
accommodation services, operation of port waterfront terminals, and primary basic organic chemicals 
outweighed decreases in the indexes for business loans (partial), fuels and lubricants retailing, and 
carbon steel scrap. For the 12 months ended in January, prices for stage 2 intermediate demand 
increased 3.2 percent, the largest 12-month advance since a 3.7-percent rise in June 2024. 

Stage 1 intermediate demand: The index for stage 1 intermediate demand advanced 0.7 percent in 
January, the largest rise since moving up 1.3 percent in August 2023. In January, prices for total 
goods inputs to stage 1 intermediate demand increased 1.2 percent, and the index for total services 
inputs climbed 0.3 percent. Higher prices for diesel fuel; traveler accommodation services; data 
processing and related services; investment banking; paving mixtures and blocks; and hot rolled steel 
bars, plates, and structural shapes outweighed declines in the indexes for securities brokerage, 
dealing, investment advice, and related services; fluid power hose and tube fittings; and hardware, 
building materials, and supplies retailing. For the 12 months ended in January, prices for stage 1 
intermediate demand advanced 1.2 percent, the largest 12-month increase since moving up 1.7 
percent in July 2024.

________________
The Producer Price Index for February 2025 is scheduled to be released on Thursday, March 13, 2025, 
at 8:30 a.m. (ET). 

                                               *****

         Recalculated Relative Importance Figures and Seasonal Adjustment Factors Available 

Each year with the release of data for January, relative importance figures and seasonal 
adjustment factors are recalculated to reflect price movements from the just-completed calendar 
year. The following information is available on the PPI website at www.bls.gov/ppi/tables/.

Relative Importance Figure Tables for December 2024:  
*  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

Seasonal Factor Update:
*  Direct seasonal factors for PPI commodity indexes for 2025
*  Recalculated seasonal factors for the last 5 years (2020-2024) for PPI commodity indexes 
*  Recalculated seasonal factors for the last 5 years (2020-2024) for PPI Final Demand-
   Intermediate Demand indexes 
 
Recalculated seasonal index data for 2020-2024 for the Final Demand-Intermediate Demand and 
commodity indexes have also been posted to the PPI database on the BLS website.

For additional information, contact the PPI Section of Index Analysis and Public Information at 
ppi-info@bls.gov or (202) 691-7705.


                                               *****

                             PPI Recalculates Seasonal Adjustment Factors

Effective with this release, Producer Price Index (PPI) seasonal adjustment factors have been 
recalculated to reflect price-movement patterns during 2024 for the Final Demand-Intermediate 
Demand (FD-ID) system and commodity-grouping indexes. This routine annual recalculation 
impacts previously published seasonally adjusted indexes and percent changes for January 2020 
through December 2024. Updated seasonal indexes and seasonal adjustment factors for January 2020 
through December 2024, as well as seasonal factors for directly adjusted commodity indexes to be 
used through December 2025, have been posted to the BLS website at www.bls.gov/ppi/tables/ or 
contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-
7705.

Tables E and F below provide seasonally adjusted percent changes for major FD-ID system indexes 
in 2024, based on former and recalculated seasonal factors. These percent changes are based on PPI 
data collected through December 2024, which include final price data through August 2024 and 
revised interim data for September through November. This differs from values shown in tables A 
through C of this release for January 2025, which include final price data through September 2024 
and revised interim data for October through December.

Table E. Over-the-month percent changes in major final demand indexes, seasonally adjusted, using 
former and recalculated seasonal factors for 2024

              Final         Final demand     Final demand    Final demand less foods,
              demand            goods           services    energy, and trade services
Month     Former  Recalc.  Former  Recalc.  Former  Recalc.     Former    Recalc.
January     0.4     0.4     -0.1     0.1      0.6     0.5         0.6       0.4
February    0.6     0.5      1.1     0.9      0.3     0.3         0.4       0.3
March       0.0     0.1     -0.2    -0.1      0.1     0.1         0.2       0.2
April       0.5     0.5      0.4     0.3      0.6     0.6         0.5       0.5
May         0.0     0.0     -0.8    -0.6      0.4     0.3         0.2       0.2
June        0.4     0.4     -0.3    -0.2      0.7     0.7         0.2       0.2
July        0.0     0.0      0.6     0.4     -0.2    -0.2         0.4       0.4
August      0.3     0.3      0.0     0.0      0.5     0.5         0.2       0.2
September   0.2     0.3     -0.3    -0.2      0.5     0.5         0.1       0.1
October     0.2     0.2      0.1     0.0      0.3     0.2         0.3       0.3
November    0.4     0.4      0.7     0.6      0.3     0.3         0.1       0.2
December    0.2     0.2      0.6     0.5      0.0     0.1         0.1       0.2


Table F. Over-the-month percent changes in major intermediate demand indexes, 
seasonally adjusted, using former and recalculated seasonal factors for 2024

            Processed goods for       Unprocessed goods for          Services for
            intermediate demand        intermediate demand        intermediate demand
Month      Former   Recalculated      Former   Recalculated      Former   Recalculated
January     -0.1        0.2             1.6        1.9             0.9     0.8
February     1.4        1.1            -0.3       -0.4             0.0     0.0
March       -0.6       -0.5            -1.4       -1.4             0.2     0.2
April        0.5        0.5             2.1        2.4             0.2     0.2
May         -1.4       -1.2             0.0       -0.3             0.3     0.3
June        -0.1       -0.1             0.6        0.5             0.4     0.5
July         0.6        0.5             2.0        2.0             0.3     0.3
August      -0.1       -0.1            -3.3       -3.2             0.1     0.1
September   -0.9       -0.8            -1.6       -1.9             0.2     0.2
October      0.4        0.3             2.4        2.1             0.1     0.1
November     0.0        0.1             0.1        0.0            -0.3    -0.2
December     0.3        0.2             3.2        3.6             0.4     0.5

                                          Technical Note


Brief Explanation of Producer Price Indexes

   The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) is a family of 
indexes that measures the average change over time in prices received (price changes) by 
producers for domestically produced goods, services, and construction.  PPIs measure 
price change from the perspective of the seller.  This contrasts with other measures, 
such as the Consumer Price Index (CPI).  CPIs measure price change from the purchaser's 
perspective.  

   More than 10,000 PPIs for individual products and groups of products are released each 
month. PPIs are available for the products of virtually every industry in the mining and 
manufacturing sectors. Over time, new PPIs have been introduced for products of 
industries in the services and construction sectors of the U.S. economy. As of January
2023, the PPI covered 69 percent of services as measured by 2017 Census revenue, and 17
percent of construction.

   More than 64,000 price quotations per month are organized into three sets of PPIs: 
(1) Final demand-Intermediate demand (FD-ID) indexes, (2) commodity indexes, and (3) 
indexes for the net output of industries and their products.  The FD-ID structure 
organizes products by class of buyer and degree of fabrication as well as by stage of 
production.  The commodity structure organizes products by similarity of end use or 
product type.  The entire output of various industries is sampled to derive price indexes 
for the net output of industries and their products. 


Final Demand-Intermediate Demand Indexes

   The PPI FD-ID structure measures price change for goods, services, and construction 
sold to final demand and to intermediate demand. The FD-ID system replaced the PPI stage-
of-processing (SOP) system as PPI's primary aggregation model with the release of data 
for January 2014. The FD-ID model expands coverage beyond that of the SOP system through 
the addition of services, construction, exports, and government purchases.  

   Compared with finished goods under the SOP system, the PPI for final demand goods 
includes nearly a 50 percent expansion of coverage. This increase can be traced to the 
addition of government purchases and exports. For overall final demand, expansion to 
include final demand services represents an even larger increase in coverage. In December 
2022, final demand goods were about 30.7 percent of overall final demand, final demand 
services were roughly 66.6 percent, and final demand construction was about 2.7 percent 
of final demand. Within intermediate demand, coverage of services for intermediate demand 
resulted in about a 45 percent increase in coverage of the intermediate demand portion of 
the economy. 

   FD-ID indexes are constructed from commodity-based producer output price indexes.  
Commodities are allocated to aggregate indexes primarily based on the type of buyer.  The 
main source of data used to determine the type of buyer is the "Use of commodities by 
industries, before redefinition," table from the Benchmark Input-Output Accounts of the 
U.S. In many cases, the same commodity is purchased by different types of buyers.  As a 
result, commodities are often included in several FD-ID indexes.  For example, regular 
gasoline is purchased for personal consumption, export, government use, and business use. 
The PPI program publishes only one commodity index for regular gasoline (wpu057104), 
reflecting sales to all types of buyers, and this index is used in all aggregations 
regardless of whether the gasoline is sold for personal consumption, as an export, to 
government, or to businesses.  Proportions based on BEA "Use of Commodities" data are 
used to allocate the correct portion of the total weight of gasoline to each use 
category.  In cases when buyer type is an important price determining characteristic, 
indexes are created based on specific buyer type. For example, within the PPI category 
for loan services, separate indexes for consumer loans and business loans were 
constructed. For more information relating to the FD-ID structure, see "A new, 
experimental system of indexes from the PPI program" in the February 2011 Monthly Labor 
Review.   

Final Demand:  The final demand portion of the FD-ID structure measures price change for 
commodities sold for personal consumption, capital investment, government, and export.  
The system is composed of six main price indexes: final demand goods; final demand trade 
services; final demand transportation and warehousing services; final demand services 
less trade, transportation, and warehousing; final demand construction; and overall final 
demand. 

   The final demand goods index measures price change for both unprocessed and processed 
goods sold to final demand.  Fresh fruits sold to consumers and computers sold for 
capital investment are examples of transactions included in the final demand goods price 
index. The final demand trade services index measures price change for the retailing and 
wholesaling of merchandise sold to final demand, generally without transformation. (Trade 
indexes measure changes in margins received by wholesalers and retailers.) The final 
demand transportation and warehousing services index tracks price change for 
transportation of passengers, as well as, transportation of cargo sold to final demand, 
and also includes prices for warehousing and storage of goods sold to final demand.  The 
final demand services less trade, transportation, and warehousing index measures price 
change for all services other than trade and transportation sold to final demand.  
Publishing, banking, lodging, and health care are examples of these services.  The final 
demand construction index tracks price change for new construction, as well as 
maintenance and repair construction sold to final demand.  Construction of office 
buildings is an example of a commodity that would be included in the final demand 
construction index.  Lastly, the overall final demand index tracks price change for all 
types of commodities sold to final demand by combining the five final demand component 
indexes described above.

Intermediate Demand: The intermediate demand portion of the FD-ID system tracks price 
change for goods, services, and construction products sold to businesses as inputs to 
production, excluding capital investment. The system includes two parallel treatments of 
intermediate demand. The first treatment organizes intermediate demand commodities by 
type. The second organizes intermediate demand commodities into production stages, with 
the explicit goal of developing a forward-flow model of production and price change. 

   The intermediate demand by commodity type portion of the system organizes commodities 
by similarity of product.  The system is composed of six main price indexes: unprocessed 
goods for intermediate demand; processed goods for intermediate demand; intermediate 
demand trade services; intermediate demand transportation and warehousing services; 
intermediate demand services less trade, transportation, and warehousing; and 
intermediate demand construction.   

   The unprocessed goods for intermediate demand price index measures price change for 
goods sold to businesses as inputs to production that have undergone no fabrication. 
Crude petroleum sold to refineries is an example of an unprocessed good sold to 
intermediate demand.  The processed goods for intermediate demand index tracks price 
change for fabricated goods sold as business inputs.  Examples include car parts sold to 
car manufacturers and gasoline sold to trucking companies.  The index for trade services 
for intermediate demand measures price change for the services of retailing and 
wholesaling goods purchased by businesses as inputs to production. The intermediate 
demand transportation and warehousing services index measures price change for business 
travel, as well as, transportation and warehousing of cargo sold to intermediate demand.  
The intermediate demand services less trade, transportation, and warehousing index 
measures price change for services other than trade, transportation, and warehousing sold 
as inputs to production.  Legal and accounting services purchased by businesses are 
examples of intermediate demand services excluding trade, transportation, and 
warehousing.  Finally, the construction for intermediate demand index measures price 
change for construction purchased by firms as inputs to production.  The index for 
construction for intermediate demand tracks price change for maintenance and repair 
construction purchased by firms.  

   The production flow treatment of intermediate demand is a stage-based system of price 
indexes. These indexes can be used to study price transmission across stages of 
production and final demand. This system is constructed in a manner that maximizes 
forward flow of production between stages, while minimizing back-flow of production. The 
production flow treatment contains four main indexes: intermediate demand stage 1, 
intermediate demand stage 2, intermediate demand stage 3, and intermediate demand stage 
4.   

   Indexes for the four stages were developed by first assigning each industry in the 
economy to one of four stages of production, where industries assigned to the fourth 
stage primarily produce output consumed as final demand, industries in the third stage 
primarily produce output consumed by stage 4 industries, industries assigned to the 
second stage primarily produce output consumed by stage 3 industries, and industries 
assigned to the first stage produce output primarily consumed by stage 2 industries.  The 
four indexes then track prices for the net inputs consumed by industries in each of the 
four stages of production.  The stage 4 intermediate demand index, for example, tracks 
price change for inputs consumed, but not produced, by industries included in the fourth 
stage of production.  Hence, the index tracks price change in inputs to industries that 
primarily produce final demand commodities (stage 4 producers primarily produce 
commodities sold to final demand).  

   Examples of heavily weighted goods-producing industries in stage 4 include the 
manufacture of light trucks and utility vehicles, automobiles, and pharmaceuticals.  
Retail trade, food service and drinking places, and hospitals are examples of heavily 
weighted service industries included in stage 4.  Stage 4 also includes all new 
construction industries.  Examples of goods consumed by stage 4 industries include motor 
vehicle parts, commercial electric power, plastic construction products, biological 
products, and beef and veal.  Engineering services, machinery and equipment wholesaling, 
long distance motor carrying, and legal services constitute examples of services consumed 
by stage 4 industries.

   Examples of highly weighted goods-producing industries included in stage 3 are motor 
vehicle parts manufacturing, animal (except poultry) slaughtering and processing, and 
semiconductor manufacturing.  Services industries classified in stage 3 include wholesale 
trade; insurance carriers; architecture, engineering, and related services; and hotels 
and motels.  Examples of goods consumed by stage 3 industries include slaughter steers 
and heifers, industrial electric power, and hot rolled steel bars, plates, and structural 
shapes.  Services commonly consumed by stage 3 industries include commissions from sales 
of property and casualty insurance, business loans, temporary help services, and 
administrative and general management consulting services.

   Petroleum refineries; electricity generation, transmission, and distribution; natural 
gas distribution; cattle ranching and farming; and plastic materials and resin 
manufacturing are among the goods-based industries assigned to stage 2.  Services 
industries that are heavily weighted in stage 2 include management of companies and 
enterprises; non-depository credit intermediation; insurance agencies and brokerages; and 
services to buildings and dwellings. Goods commonly purchased by stage 2 industries 
include crude oil, natural gas, formula feeds, and primary basic organic chemicals. 
Services that are heavily weighted in the intermediate demand stage 2 index are legal 
services, business loans, and cellular phone and other wireless telecommunication.

   Goods producing industries in stage 1 include oil and gas extraction, paper mills, and 
grain farming.  Real estate, legal services, and advertising services are examples of 
highly weighted services industries included in stage 1.  Examples of goods consumed by 
stage 1 industries are commercial and industrial electric power and gasoline. Services 
commonly consumed by stage 1 industries include solid waste collection, chemicals and 
allied products wholesaling, and guestroom or unit rental.  It should be noted that all 
inputs purchased by stage 1 industries are by definition produced either within stage 1 
or by latter stages of processing, leaving stage 1 less useful for price transmission 
analysis. For additional information on industry stage assignments, see www.bls.gov/ppi/
fd-id/ppi-intermediate-demand-by-production-flow-industry-stage-assignments.htm.


Comparing the PPI with CPI

   Although some data users utilize the PPI as a potential indicator of the Consumer 
Price Index (CPI), there are many reasons why the PPI and the CPI may diverge. The scope 
of the personal consumption portion of the PPI includes all marketable output sold by 
domestic producers for households. The scope of the CPI includes goods and services 
provided by business or government, where explicit user charges are paid by consumers. 
For example, the most heavily weighted item in the CPI, owners' equivalent rent, is 
excluded from the PPI. The scope of the CPI includes imports. The PPI excludes imports. 
The CPI only includes components of personal consumption directly paid for by the 
consumers, while the PPI includes components of personal consumption that may not be paid 
for by consumers. For example, the PPI includes medical services paid for by third 
parties. In contrast to CPI, PPI does not completely cover services. PPIs exclude taxes, 
since they do not represent producer revenue. Conversely, sales and other taxes paid by 
consumers are part of household expenditure and are included in the CPI. Additional 
technical differences between PPI and CPI also exist. For more information see "Comparing 
new final demand producer price indexes with other Government price indexes," Monthly 
Labor Review, January 2014, at www.bls.gov/opub/mlr/.


Commodity Indexes

   The commodity classification of the PPI organizes goods, services, and construction by 
similarity of product or end use, disregarding industry of origin. With the release of 
data for July 2009, PPI expanded its commodity structure to include indexes for services 
and construction products. Prior to this date, the PPI commodity structure only included 
products from goods producing sectors. Table 9 of the PPI Detailed Report includes data 
for commodity indexes, organized in a hierarchal structure, including major groupings, 
subgroups, product classes, sub-product classes, and individual items.


Industry Net-Output Price Indexes

   PPIs for the net output of industries and their products are grouped according to the 
North American Industry Classification System (NAICS).  Prior to the release of January 
2004, industry-based PPIs were published according to the Standard Industrial 
Classification (SIC) system.  Industry price indexes are compatible with other economic 
time series organized by industry, such as data on employment, wages, and productivity.  
Table 11 of the PPI Detailed Report includes data for NAICS industries and industry 
groups (3-, 4-, 5-, and 6-digit codes), Census product classes (7- and 8-digit codes), 
products (9-digit codes), more detailed sub-products (11-digit codes), and, for some 
industries, indexes for other sources of revenue.

   Indexes may represent one of three kinds of product categories.  Every industry has 
primary product indexes that show changes in prices received by establishments classified 
in the industry for products made primarily, but not necessarily exclusively, by that 
industry. The industry classification of an establishment is determined by which products 
make up a plurality of its total shipment value.  In addition, most industries have 
secondary product indexes that show changes in prices received by establishments for 
products chiefly made in some other industry. Some industries have miscellaneous receipts 
indexes that track price changes for other sources of revenue received by establishments 
within the industry that are not derived from sales of their products; for example, 
resales of purchased materials, or revenues from parking lots owned by a manufacturing 
plant.


Data Collection

   PPIs are constructed using selling prices reported by establishments of all sizes, 
selected by probability sampling, with the probability of selection proportionate to
size. Individual items and transaction terms also are chosen by probability proportionate 
to size. BLS strongly encourages cooperating companies to supply actual transaction 
prices at the time of shipment to minimize the use of list prices. Prices submitted 
by survey respondents are effective on the Tuesday of the week containing the 13th day 
of the month. The survey is conducted online via the BLS Internet Data Collection 
Facility (IDCF).) Data provided by survey respondents are supplemented with data from 
other sources for some areas.

   Price data are provided by survey respondents on a voluntary and confidential basis; 
only sworn BLS employees are allowed access to individual company price reports.  BLS 
publishes price indexes, not actual prices.  All PPIs are subject to monthly revisions 
up to 4 months after original publication to reflect the availability of late reports and
corrections by respondents. 

   BLS periodically updates the PPI sample of survey respondents to better reflect 
current conditions when the structure, membership, technology, or product mix of an 
industry shifts significantly and to spread reporting burden among smaller firms.  
Information on these resampling efforts are noted in the PPI News Release and PPI 
Detailed Report in the months they occur.   

   As part of an ongoing effort to expand coverage to sectors of the economy other than 
mining and manufacturing, an increasing number of service and construction sector 
industries have been introduced into the PPI.  The following is a list of service and 
construction sector industries introduced into the Producer Price Index, organized by 
SIC or NAICS code at their date of introduction, and the PPI Detailed Report issue
that announced their introduction.
                                                                      PPI
                                                                      Detailed
                                                                      Report
              Title                                           Code    Issue

                                                              SIC             
Wireless telecommunications...................................4812    July 1999
Telephone communications, except radio telephone..............4813    July 1995
Television broadcasting.......................................4833    July 2002
Grocery stores................................................5411    July 2000
Meat and fish (seafood) markets...............................5421    July 2000
Fruit and vegetable markets...................................5431    July 2000
Candy, nut, and confectionery stores..........................5441    July 2000
Retail bakeries...............................................5461    July 2000
Miscellaneous food stores.....................................5499    July 2000
New car dealers...............................................5511    July 2000
Gasoline service stations.....................................5541    January 2002
Boat dealers..................................................5551    January 2002
Recreational vehicle dealers..................................5561    January 2002
Miscellaneous retail..........................................59      January 2001
Security brokers, dealers, and investment bankers.............6211    January 2001
Investment advice.............................................6282    January 2003
Life insurance carriers.......................................6311    January 1999
Property and casualty insurance...............................6331    July 1998
Insurance agencies and brokerages.............................6412    January 2003
Operators and lessors of nonresidential buildings.............6512    January 1996
Real estate agents and managers...............................6531    January 1996
Prepackaged software..........................................7372    January 1998
Data processing services......................................7374    January 2002
Home health care services.....................................8082    January 1997
Legal services................................................8111    January 1997
Engineering design, analysis, and consulting services.........8711    January 1997
Architectural design, analysis, and consulting services.......8712    January 1997
Premiums for property and casualty insurance..................9331    July 1998
                                                         
                                                              NAICS            
New industrial building construction..........................236211  January 2008
New warehouse building construction...........................236221  July 2005
New school construction.......................................236222  July 2006
New office construction.......................................236223  January 2007
New health care building construction.........................236224  January 2013
Concrete contractors, nonresidential building work............23811X  July 2008
Roofing contractors, nonresidential building work.............23816X  July 2008
Electrical contractors, nonresidential building work..........23821X  July 2008
Plumbing / HVAC contractors, nonresidential building work.....23822X  July 2008
Merchant wholesalers, durable goods...........................423     July 2005
Merchant wholesalers, nondurable goods........................424     July 2005
Furniture and home furnishings stores.........................442     January 2004
Electronics and appliance stores..............................443     January 2004
Building material and garden equipment and supplies dealers...444     January 2004
Clothing and clothing accessories stores......................448     January 2004
Sporting goods, hobby, book, and music stores.................451     January 2004
General merchandise stores....................................452     January 2004
Miscellaneous store retailers.................................453     January 2004
Pipeline transportation of natural gas........................486210  June 2022
Internet service providers....................................518111  July 2005
Internet publishing and web search portals....................519130  January 2010
Commercial banking............................................522110  January 2005
Savings institutions..........................................522120  January 2005
Direct health and medical insurance carriers..................524114  July 2004
Construction, mining, and forestry machinery and equipment 
rental and leasing............................................532412  January 2005
Management consulting services................................541610  January 2007
Security guards and patrol services...........................561612  July 2005
Offices of dentists...........................................621210  January 2011
Blood and organ banks.........................................621991  January 2007
Amusement and theme parks.....................................713110  July 2006
Golf courses and country clubs................................713910  July 2006
Fitness and recreational sports centers.......................713940  July 2005
Commercial machinery repair and maintenance...................811310  July 2007


Weights

   Weights for most commodity groupings of the PPI, as well as, weights for commodity-
based aggregate indexes calculated from commodity groupings, such as FD-ID indexes, 
currently reflect 2017 values of shipments as reported in the Census of Manufactures 
and other sources. From January 2018 to December 2022, PPI weights were derived from 
2012 shipment values. Industry indexes now are calculated under the 2022 NAICS structure 
utilizing 2017 value of shipment weights and 2012 net output ratios. The periodic update 
of the value weights used to calculate the PPI is done to more accurately reflect changes 
in production and marketing patterns in the economy.

   Net output values of shipments are used as weights for industry indexes. Net output 
values refer to the value of shipments from establishments within the industry to buyers 
outside the industry. However, weights for commodity indexes are based on gross shipment 
values, including values of shipments between establishments within the same industry. As 
a result, broad commodity grouping indexes, such as the PPI for All Commodities (which is 
composed of major commodity groupings 01 through 15), are affected by the multiple 
counting of price change at successive stages of processing, which can lead to 
exaggerated or misleading signals about inflation. The intermediate demand by commodity 
type FD-ID indexes partially correct for this defect, but industry indexes, final demand 
FD-ID indexes, and intermediate demand by production flow FD-ID indexes consistently 
correct for this at all levels of aggregation.  Therefore, industry and FD-ID indexes are 
more appropriate than broad commodity groupings for analysis of general price trends.


Price Index Reference Base

   Effective with publication of January 1988 data, many important PPI series (including 
most commodity groups and individual items) were placed on a new reference base, 1982 = 
100.  From 1971 through 1987, the standard reference base for most PPI series was 1967 = 
100.  Except for rounding differences, the shift to the new reference base did not alter 
any previously published percent changes for affected PPI series. (See "Calculating Index 
Changes," below.)  The 1982 reference base is not used for commodity indexes with a base 
later than December 1981 or for industry net output indexes and their products.  The FD-
ID indexes typically have a reference base of November 2009 = 100.

   For further information on the underlying concepts and methodology of the Producer 
Price Index, see chapter 14, "Producer Prices," in the BLS Handbook of Methods.  This 
chapter can be downloaded from the BLS Web site at www.bls.gov/opub/hom/homch14.htm.  


Calculating Index Changes

   Each PPI measures price changes from a reference period that equals 100.0.  An 
increase of 5.5 percent from the reference period in the Final Demand Goods Price Index, 
for example, is shown as 105.5.  This change also can be expressed in dollars, as 
follows:  prices received by domestic producers of a sample of final demand goods have 
risen from $100 in November 2009 to $105.50.  Likewise, a current index of 90.0 would 
indicate that prices received by producers of final demand goods are 10 percent lower 
than they were in November 2009.

   Movements of price indexes from one month to another are usually expressed as percent 
changes, rather than as changes in index points.  Index point changes are affected by the 
level of the index in relation to its base period, whereas percent changes are not.  The 
following example shows the computation of index point and percent changes.

   Index point change
      Final Demand Goods Price Index     107.5
      Less previous index                104.0
      Equals index point change            3.5

   Index percent change
      Index point change                   3.5
      Divided by the previous index      104.0
      Equals                             0.034
      Result multiplied by 100           0.034 x 100
      Equals percent change                3.4


Seasonally Adjusted and Unadjusted Data

   Because price data are used for different purposes by different groups, BLS publishes 
seasonally adjusted and unadjusted changes each month.  Seasonally adjusted data are 
preferred for analyzing general price trends in the economy because these data eliminate 
the effect of changes that normally occur at about the same time, and in about the same 
magnitude, every year-such as price movements resulting from normal weather patterns, 
regular production and marketing cycles, model changeovers, seasonal discounts, and 
holidays.  For these reasons, seasonally adjusted data more clearly reveal underlying 
trends.  Unadjusted data are of primary interest to users who need information that can 
be related to actual dollar values of transactions.  Individuals requiring this 
information include marketing specialists, purchasing agents, budget and cost analysts, 
contract specialists, and commodity traders.  It is the unadjusted data that are 
generally cited when escalating long-term contracts such as purchasing agreements or real 
estate leases.  For more information, see Price Adjustment Guide for Contracting Parties, 
on the Web at www.bls.gov/ppi/publications/price-adjustment-guide-for-contracting-
parties.htm.   

   Seasonal adjustment is accomplished using X-13 ARIMA, a software package published by 
the U.S. Census Bureau.  Each year, the seasonal status of most commodity indexes is 
reevaluated to reflect more recent price behavior. Industry net output indexes are not
seasonally adjusted.  For time series that exhibit seasonal pricing patterns, new 
seasonal factors are estimated and applied to the unadjusted data from the prior 5 years.  
Updated seasonally adjusted indexes replace the most recent 5 years of seasonal data. 

   Seasonal factors may be applied to series using either a direct or an aggregative 
method. Generally, commodity indexes are seasonally adjusted using direct seasonal 
adjustment, which produces a more complete elimination of seasonal movements than does 
the aggregative method.  However, the direct seasonal adjustment process may not yield 
figures that possess additive consistency.  Thus, a seasonally adjusted index for a broad 
category that is directly adjusted may not be logically consistent with all seasonally 
adjusted indexes for its components.  Seasonal movements for FD-ID indexes are derived 
indirectly through an aggregative method that combines movements of a wide variety of 
subproduct class (six-digit) series.

   Seasonally adjusted indexes can become problematic when previously stable and 
predictable price patterns abruptly change.  If the new pattern persists, the seasonal 
adjustment method will eventually reflect it; if the pattern keeps shifting, however, 
seasonally adjusted data will become chronically troublesome.  This problem occurs 
relatively infrequently for farm and food-related products, but has more often affected 
manufactured products such as automobiles and steel.

Since January 1988, the PPI has used Intervention Analysis Seasonal Adjustment methods 
to enhance the calculation of seasonal factors.  With this technique, outlier values that 
may distort the seasonal pattern are removed from the data prior to applying the standard 
seasonal factor estimation procedure.  For example, a possible economic cause for large 
price movements for petroleum-based products might have been the COVID-19 pandemic. In 
this case, intervention techniques allowed for better estimates of seasonally adjusted 
data. On the whole, very few series have required intervention.  Out of over 400 seasonally
adjusted commodity series, 69 were subject to intervention in 2023. 

   For more information relating to seasonal adjustment methods, see "PPI and CPI Seasonal 
Adjustment: an Update" in the July 2010 Monthly Labor Review, and "PPI and CPI Seasonal 
Adjustment During the COVID-19 Pandemic" in the May 2022 Monthly Labor Review.


Producer Price Index Data on the Internet

   In 1995, the BLS began posting PPI series, news releases, and technical information to 
the internet. There were more than 13 million instances of PPI data being downloaded from 
the BLS website during 2022.


Retrieving PPI data from the PPI Web site

   PPI data can be obtained online (www.bls.gov/ppi). On this page, under the tab labeled 
"Featured PPI databases" links provide the following methods of data retrieval:

   Top Picks is a form-based application for both Industry Data and Commodity Data that 
allows the user to quickly obtain PPI time series data by selecting the high-level 
aggregate and other commonly requested time series, including the All Commodities Index 
and the FD-ID indexes (for example, Final Demand).  Within each list, any one-or all-of 
the time series shown can be selected.  A user can modify the date range and output 
options after executing the query, using the reformat button above the data output table.

   One-Screen Data Search and Multi-Screen Data Search are form-based query applications 
for both Industry Data and Commodity Data designed for users unfamiliar with the PPI 
coding structure.  These applications guide a user through the PPI classification by 
listing index titles and do not require knowledge of commodity or industry codes.  Data 
retrieved are based on a query formulated by selecting data characteristics from lists 
provided.  Two options are available to create customized tables, depending on a user's 
browser capability.  The one-screen option is a JavaScript application that uses a single 
screen to guide a user through the available time series data.  The second option is a 
multiple-screen, non-Java-based application.  Both methods allow a user to browse the PPI 
coding structure and select multiple series.  Users can modify the date range and output 
options after executing the query using the reformat button above the data output table.

   Series Report is a form-based application that allows users to input multiple, 
formatted PPI time series identifiers (commodity or industry codes) as inputs in 
extracting data according to a specified set of date ranges and output options.  This 
application provides the most efficient path for users who are familiar with the format 
of PPI time series identifiers.  There are five alphabetic prefixes used to create unique 
PPI time series identifiers:  WP, WD, PC, PD, and ND.  Each provides the user access to a 
different PPI database.  Adding either a "u" (not seasonally adjusted) or an "s" 
(seasonally adjusted) to the end of these prefixes further specifies the type of data 
needed. Examples are provided below.

   For commodity and FD-ID indexes, series identifiers combine a "wpu" prefix (not 
seasonally adjusted) or a "wps" prefix (seasonally adjusted) with a commodity code.  

Commodity code   Provides data for:
wps141101        Passenger cars, seasonally adjusted
wpu141101        Passenger cars, not seasonally adjusted
wpufd4           Final demand, not seasonally adjusted
wpsid63          Services for intermediate demand, seasonally adjusted

   For discontinued commodity indexes, series identifiers combine a "wdu" prefix (not 
seasonally adjusted) or a "wds" prefix (seasonally adjusted) with a commodity code.  

Commodity code   Provides data for:
wds019           Other farm products, seasonally adjusted 
wdu0635          Preparations, ethical (prescription), not seasonally adjusted
wdusi138011      Stainless steel mill products, not seasonally adjusted

   Current price indexes grouped by industry according to NAICS have series identifiers 
that begin with the prefix "pcu." After the prefix, there are 12 digits (the 6-digit 
industry code is listed twice) followed by up to 7 alphanumeric characters identifying 
product detail.  Dashes are used as placeholders for higher-level industry group codes.

Industry-product code,
current NAICS series        Provides data for:
pcu325---325---             Chemical manufacturing 
pcu336110336110             Automobile and light duty motor vehicle manufacturing
pcu621111621111411          Offices of physicians, one- and two-physician practices and 
                            single-specialty group practices, general/family practice

   Discontinued industry-product codes based on SIC combine a "pdu" prefix and "#" 
between the fourth and fifth characters of the product code.  Series identifiers for the 
discontinued dataset use underscores as placeholders to complete a reference to an SIC 
industry group code of fewer than four digits.  (All PPI industry-based indexes organized 
by SIC were discontinued with the introduction of NAICS in 2004.)

Industry-product code,
discontinued SIC series     Provides data for:
pdu28_ _#                   Chemicals and allied products
pdu331_#                    Blast furnaces, steel works, and rolling and finishing mills
pdu3711#111                 Passenger cars

   Price indexes for discontinued series grouped by industry according to NAICS have 
identifiers that begin with the prefix "ndu." After the prefix, there are 12 numeric 
digits (the 6-digit industry code is listed twice), and up to 7 additional alphanumeric 
characters that identify product detail.  Dashes are used as placeholders for higher-
level group codes.

Industry-product code,
discontinued NAICS series   Provides data for
ndu212231212231             Lead and zinc ore mining
ndu2122312122312            Lead, zinc concentrates
ndu212231212231214          Lead  concentrates

   Text Files are best suited for users requiring access to either a large volume of time 
series data or other PPI-related documentation, such as seasonal factor tables and 
relative importance tables. The text files can be accessed at download.bls.gov/ or 
directly from links on the "PPI Databases" page or the PPI homepage. Data and 
documentation available for download include the following:

                                       Directory:
Industry Data                          /pub/time.series/pc
Industry Data - Discontinued 
                  (NAICS basis)        /pub/time.series/nd
                  (SIC basis)          /pub/time.series/pd
Commodity Data (incl. FD-ID)           /pub/time.series/wp
Commodity Data - Discontinued          /pub/time.series/wd
Special requests                       /pub/special.requests/ppi


Additional information

   The PPI homepage (www.bls.gov/ppi) contains additional information regarding PPI 
data and methodology. The "PPI Publications" section of the homepage provides PPI news 
releases, both current and archived, as well as general PPI information.  The "PPI Tables"
section provides relative importance and seasonal factor tables.  The remaining sections 
offer special notices and publications pertaining to PPI methodology and applications.  

   For questions or comments regarding PPI data classification, methodology, or data 
availability on the Internet, call or e-mail the Section of Index Analysis and Public 
Information at (202) 691-7705 or ppi-info@bls.gov. If you are deaf, hard of hearing, or 
have a speech disability, please dial 7-1-1 to access telecommunications relay services.