Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 18-0240 
8:30 a.m. (EST), Thursday, February 15, 2018

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 2018


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 were unchanged in 
December and moved up 0.4 percent in November. (See table A.) On an unadjusted basis, the 
final demand index rose 2.7 percent for the 12 months ended in January.

In January, the rise in the index for final demand is attributable to a 0.3-percent increase in prices 
for final demand services and a 0.7-percent advance in the index for final demand goods. 

The index for final demand less foods, energy, and trade services rose 0.4 percent in January, the 
largest advance since increasing 0.5 percent in April 2017. For the 12 months ended in January, 
prices for final demand less foods, energy, and trade services moved up 2.5 percent, the largest 
rise since 12-month percent change data were available in August 2014.

Final Demand

Final demand services: Prices for final demand services advanced 0.3 percent in January following 
a 0.1-percent decline a month earlier. Nearly two-thirds of the broad-based increase is attributable to 
the index for final demand services less trade, transportation, and warehousing, which moved up 0.4 
percent. Margins for final demand trade services rose 0.3 percent, and prices for final demand 
transportation and warehousing services advanced 0.4 percent. (Trade indexes measure changes in 
margins received by wholesalers and retailers.)

Product detail: A major factor in the January increase in prices for final demand services was the 
index for hospital outpatient care, which rose 1.0 percent. The indexes for apparel, footwear, and 
accessories retailing; health, beauty, and optical goods retailing; residential real estate services 
(partial); long-distance motor carrying; and hospital inpatient care also moved higher. In contrast, 
margins for chemicals and allied products wholesaling declined 2.3 percent. Prices for wireless 
telecommunication services and airline passenger services also fell. (See table 4.)

Final demand goods: The index for final demand goods jumped 0.7 percent in January, the sixth 
consecutive increase. Over 80 percent of the January advance can be traced to prices for final 
demand energy, which climbed 3.4 percent. The index for final demand goods less foods and energy 
rose 0.2 percent. Conversely, prices for final demand foods fell 0.2 percent. 

Product detail: Nearly half of the January increase in the index for final demand goods is attributable 
to prices for gasoline, which climbed 7.1 percent. The indexes for residential electric power, iron and 
steel scrap, diesel fuel, jet fuel, and fresh and dry vegetables also moved higher. In contrast, prices 
for chicken eggs fell 38.9 percent. The indexes for residential natural gas and for power cranes, 
draglines, and shovels also declined.

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

2017

Jan.

0.5 0.2 0.9 0.2 3.8 0.4 0.4 0.9 -0.3 0.2 1.7 1.7

Feb.

-0.1 0.1 0.2 0.7 -0.2 0.2 -0.3 -1.1 0.2 0.1 2.0 1.8

Mar.

0.1 0.1 0.1 0.8 -1.4 0.4 0.2 0.6 -1.0 0.1 2.2 1.8

Apr.

0.4 0.5 0.5 1.3 0.0 0.3 0.4 0.4 0.9 0.5 2.5 2.0

May

0.1 0.1 -0.5 -0.8 -2.0 -0.1 0.4 0.8 0.2 0.2 2.3 2.1

June

0.1 0.2 0.0 0.3 -0.1 0.1 0.1 -0.3 0.2 0.2 1.9 2.1

July

0.1 0.1 0.0 0.0 -0.3 0.1 0.1 0.2 -0.4 0.2 2.0 2.0

Aug.

0.3 0.1 0.5 -0.7 3.1 0.2 0.2 0.5 0.2 0.0 2.4 1.9

Sept.

0.3 0.2 0.6 -0.1 2.9 0.2 0.2 -0.2 1.3 0.1 2.6 2.1

Oct.

0.5 0.3 0.2 0.3 -0.1 0.3 0.5 1.2 0.7 0.3 2.8 2.3

Nov.

0.4 0.3 0.9 0.4 3.6 0.3 0.2 -0.3 0.5 0.3 3.1 2.4

Dec.

0.0 0.1 0.1 -0.4 0.5 0.2 -0.1 -0.4 -0.6 0.2 2.6 2.3

2018

Jan.

0.4 0.4 0.7 -0.2 3.4 0.2 0.3 0.3 0.4 0.4 2.7 2.5

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 2017. In addition, indexes for September 2017 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 Commodity Type

Within intermediate demand in January, prices for processed goods increased 0.7 percent, the index 
for unprocessed goods advanced 0.9 percent, and prices for services edged up 0.1 percent. (See tables 
B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand climbed 0.7 percent in January, the sixth straight rise. Seventy percent of the January 
advance is attributable to a 2.5-percent increase in prices for processed energy goods. The index for 
processed materials less foods and energy also moved higher, rising 0.3 percent. Conversely, prices 
for processed foods and feeds moved down 0.3 percent. For the 12 months ended in January, the 
index for processed goods for intermediate demand advanced 4.6 percent.

Product detail: A major factor in the January increase in prices for processed goods for intermediate 
demand was the index for diesel fuel, which rose 5.1 percent. Prices for gasoline, commercial electric 
power, jet fuel, primary nonferrous metals, and copper and brass mill shapes also moved higher. In 
contrast, the processed eggs index fell 13.2 percent. Prices for utility natural gas and ethanol also 
declined. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand increased 0.9 percent in January, the third straight advance. Most of the January rise can be 
attributed to the index for unprocessed nonfood materials less energy, which climbed 3.8 percent. 
The index for unprocessed energy materials advanced 0.5 percent. Conversely, prices for 
unprocessed foodstuffs and feedstuffs declined 0.8 percent. For the 12 months ended in January, the 
index for unprocessed goods for intermediate demand climbed 2.5 percent.

Product detail: A major factor in the January increase in the index for unprocessed goods for 
intermediate demand was prices for iron and steel scrap, which jumped 12.9 percent. The indexes for 
crude petroleum, slaughter barrows and gilts, slaughter chickens, corn, and nonferrous scrap also 
moved higher. In contrast, prices for slaughter cattle fell 4.9 percent. The indexes for natural gas and 
wastepaper also moved lower.

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.)

2017

Jan.

1.0 0.2 4.6 0.3 4.0 3.6 1.5 6.5 3.3 17.4

Feb.

0.5 0.4 0.0 0.7 5.4 -0.1 2.5 -4.0 1.0 19.2

Mar.

0.0 0.3 -2.2 0.4 5.3 -3.7 -1.2 -11.0 2.1 13.4

Apr.

0.5 -0.3 1.3 0.4 5.4 2.0 -0.8 7.7 -0.6 12.8

May

0.0 0.5 -0.2 -0.1 4.6 -1.1 1.4 -4.1 -0.7 8.5

June

0.2 0.7 0.3 0.1 3.8 0.0 0.8 -1.4 0.6 5.8

July

-0.1 -0.2 0.1 -0.1 3.6 0.3 0.6 -0.8 0.8 6.0

Aug.

0.5 -0.3 1.4 0.4 4.1 -0.7 -3.6 1.3 1.3 7.0

Sept.

0.6 -0.8 2.5 0.3 4.5 0.5 -1.0 1.4 1.4 7.7

Oct.

0.7 0.4 2.1 0.5 5.0 -0.3 0.4 1.4 -3.6 7.7

Nov.

0.5 0.3 1.5 0.3 5.3 3.0 2.2 5.6 0.9 10.6

Dec.

0.5 -0.2 0.9 0.4 5.1 1.9 0.1 4.4 1.4 5.2

2018

Jan.

0.7 -0.3 2.5 0.3 4.6 0.9 -0.8 0.5 3.8 2.5

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 2017. In addition, indexes for September 2017 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: Prices for services for intermediate demand inched up 0.1 
percent in January following no change in December. Leading the increase, the index for 
services less trade, transportation, and warehousing for intermediate demand advanced 0.1 
percent. Prices for transportation and warehousing services for intermediate demand rose 0.3 
percent. Conversely, margins for trade services for intermediate demand declined 0.3 percent. 
For the 12 months ended in January, the index for services for intermediate demand climbed 2.9 
percent. 

Product detail: A 2.7-percent increase in the index for business loans (partial) was a leading 
factor in the January rise in prices for services for intermediate demand. The indexes for 
securities brokerage, dealing, investment advice, and related services; network compensation 
from broadcast and cable television; paper and plastics products wholesaling; and long-distance 
motor carrying also moved higher. In contrast, margins for chemicals and allied products 
wholesaling fell 2.3 percent. The indexes for machinery and equipment parts and supplies 
wholesaling, internet advertising (sold by non-print publishers), and airline passenger services 
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.)

2017

Jan.

0.2 0.2 0.0 0.2 1.7

Feb.

0.3 1.1 0.3 0.2 2.1

Mar.

0.1 0.4 -0.1 0.0 2.0

Apr.

0.5 0.6 0.4 0.4 2.5

May

0.2 0.3 0.2 0.2 2.7

June

0.3 0.0 0.1 0.5 2.8

July

0.1 0.1 0.0 0.1 2.2

Aug.

0.2 0.3 0.2 0.2 2.8

Sept.

0.2 -0.3 0.7 0.1 2.8

Oct.

0.3 0.3 0.4 0.3 2.9

Nov.

0.5 1.0 0.5 0.4 3.2

Dec.

0.0 0.0 -0.1 0.1 2.9

2018

Jan.

0.1 -0.3 0.3 0.1 2.9

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 2017. In addition, indexes for September 2017 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: Prices for stage 4 intermediate demand advanced 0.3 percent in 
January after no change in December. In January, the index for total goods inputs to stage 4 
intermediate demand climbed 0.7 percent, while prices for total services inputs were unchanged. (See 
table D.) Increases in the indexes for diesel fuel, gasoline, commercial electric power, business loans 
(partial), legal services, and paper and plastics products wholesaling outweighed declines in the 
indexes for machinery and equipment parts and supplies wholesaling, chemicals and allied products 
wholesaling, and prepared poultry. (See table 6.) For the 12 months ended in January, prices for stage 
4 intermediate demand moved up 3.1 percent. 

Stage 3 intermediate demand: The index for stage 3 intermediate demand rose 0.4 percent in 
January, the sixth straight advance. In January, prices for total goods inputs to stage 3 intermediate 
demand increased 0.8 percent. The index for total services inputs was unchanged. Higher prices for 
gasoline, jet fuel, slaughter barrows and gilts, slaughter chickens, diesel fuel, and business loans 
(partial) outweighed decreases in the indexes for raw milk, slaughter cattle, and chemicals and allied 
products wholesaling. For the 12 months ended in January, prices for stage 3 intermediate demand 
climbed 4.1 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 0.5 percent in 
January, the seventh consecutive rise. In January, prices for total goods inputs to stage 2 intermediate 
demand moved up 0.5 percent, and the index for total services inputs advanced 0.3 percent. Higher 
prices for crude petroleum; network compensation from broadcast and cable television; legal 
services; securities brokerage, dealing, investment advice, and related services; commissions from 
sales of insurance; and liquefied petroleum gas outweighed declines in the indexes for natural gas, 
thermoplastic resins and plastics materials, and cable network advertising time sales. For the 12 
months ended in January, prices for stage 2 intermediate demand rose 3.0 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand advanced 0.9 percent in 
January, the eighth straight increase. In January, the index for total goods inputs to stage 1 
intermediate demand jumped 1.7 percent. In contrast, prices for total services inputs fell 0.2 percent. 
Rising prices for iron and steel scrap, diesel fuel, business loans (partial), gasoline, nonferrous scrap, 
and crude petroleum outweighed declines in the indexes for deposit services (partial), primary basic 
organic chemicals, and natural gas. For the 12 months ended in January, prices for stage 1 
intermediate demand moved up 5.6 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

2017

Jan.

0.5 0.6 0.2 1.0 1.7 0.1 1.2 2.4 0.4 0.9 1.9 -0.1

Feb.

0.4 0.4 0.5 0.6 1.0 0.4 0.0 -0.3 0.2 0.6 0.8 0.3

Mar.

0.1 0.2 0.0 0.1 -0.1 0.3 -1.6 -3.5 0.1 0.2 0.5 -0.1

Apr.

0.5 0.4 0.7 -0.1 -0.4 0.4 1.4 2.6 0.4 0.3 0.0 0.6

May

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

June

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

July

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

Aug.

0.3 0.3 0.3 0.4 0.5 0.2 0.2 0.5 0.0 0.7 1.1 0.2

Sept.

0.2 0.3 0.2 0.4 0.7 0.2 0.6 1.3 0.2 0.6 1.0 0.2

Oct.

0.4 0.6 0.3 0.4 0.4 0.3 0.5 0.5 0.4 0.5 0.6 0.6

Nov.

0.5 0.4 0.6 1.2 1.7 0.6 1.1 2.0 0.4 0.7 0.8 0.5

Dec.

0.0 0.1 -0.1 0.4 0.9 0.1 0.8 1.7 0.1 0.6 1.2 -0.2

2018

Jan.

0.3 0.7 0.0 0.4 0.8 0.0 0.5 0.5 0.3 0.9 1.7 -0.2

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 2017. In addition, indexes for September 2017 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 2018 is scheduled to be released on Wednesday, 
March 14, 2018 at 8:30 a.m. (EDT).


                                               *****

                                       Resampling of Industries

Effective with the release of data for January 2018, the Producer Price Index (PPI) includes data for 
31 resampled industries classified according to the 2017 North American Industry Classification 
System (NAICS). The Bureau of Labor Statistics periodically updates the sample of producers 
providing data for the PPI to reflect current conditions more accurately when the structure, 
membership, technology, or product mix of an industry shifts. The first results of this systematic 
process were published in July 1986. Subsequent efforts have been completed at regular intervals.  

For information on index additions, deletions, and recodes effective January 2018, see the current 
issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201801.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
213115        Support activities for nonmetallic minerals (except fuels) mining 
311212        Rice milling
311213        Malt manufacturing
322219        Other paperboard container manufacturing
325193        Ethyl alcohol manufacturing
325510        Paint and coating manufacturing
325520        Adhesive manufacturing
326122        Plastics pipe and pipe fitting manufacturing
326130        Laminated plastics plate, sheet (except packaging), and shape manufacturing
326191        Plastics plumbing fixture manufacturing
326299        All other rubber product manufacturing
331110        Iron and steel mills and ferroalloy manufacturing
331210        Iron and steel pipe and tube manufacturing from purchased steel
331221        Rolled steel shape manufacturing
331222        Steel wire drawing
331313        Alumina refining and primary aluminum production
332114        Custom roll forming
332215        Metal cookware, cutlery, and flatware manufacturing
332618        Other fabricated wire product manufacturing
332722        Bolt, nut, screw, rivet, and washer manufacturing
333924        Industrial truck, trailer, and stacker manufacturing
334517        Irradiation apparatus manufacturing
335911        Storage battery manufacturing
444220        Nursery, garden, and farm supply stores
492110        Couriers and express delivery services
524113        Direct life insurance carriers
524210        Insurance agencies and brokerages
531311        Residential property managers
531312        Nonresidential property managers
541211        Offices of certified public accountants
622110        General medical and surgical hospitals


                                               *****

                             Recalculation of Seasonal Adjustment Factors

Effective with this release, seasonal adjustment factors have been recalculated to reflect price-movement 
patterns during 2017 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 2013 through December 2017. 

Revised seasonally adjusted data for this period, as well as seasonal adjustment factors for directly 
adjusted commodity indexes to be used through December 2018, were released February 13, 2018. 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 2017, based on former and recalculated seasonal factors. These percent changes include final 
price data through August 2017 and may differ from values shown in tables A through D of this release, 
which include final price data through September 2017.

Table E.  Over-the-month percent changes in major final demand indexes, seasonally adjusted, using former 
and recalculated seasonal factors for 2017

               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      0.6     0.5        1.0     0.9        0.4     0.4           0.1      0.2
February      .0     -.1         .4      .2        -.3     -.3            .3       .1
March         .0      .1        -.1      .1         .2      .2            .0       .1
April         .5      .4         .5      .5         .5      .4            .6       .5
May           .0      .1        -.5     -.5         .3      .4            .0       .1
June          .0      .1        -.1      .0         .1      .1            .2       .2
July          .1      .1        -.1      .0         .1      .1            .1       .1
August        .4      .3         .6      .5         .2      .2            .1       .1
September     .3      .3         .6      .5         .2      .2            .2       .2
October       .4      .5         .3      .3         .5      .5            .2       .3
November      .4      .4        1.0      .9         .2      .2            .4       .3
December     -.1      .0         .0      .1        -.2     -.1            .1       .1
 

Table F.  Over-the-month percent changes in major intermediate demand indexes, seasonally adjusted, 
using former and recalculated seasonal factors for 2017

            Processed goods for       Unprocessed goods for          Services for
            intermediate demand        intermediate demand        intermediate demand
Month      Former   Recalculated      Former   Recalculated      Former   Recalculated
January      1.2         1.0            3.8         3.6            0.4         0.2
February      .7          .5            -.1         -.1             .4          .3
March        -.3          .0           -3.4        -3.7             .0          .1
April         .5          .5            1.6         2.0             .5          .5
May          -.1          .0           -1.0        -1.1             .0          .2
June          .1          .2             .1          .0             .5          .3
July         -.1         -.1             .7          .3            -.1          .1
August        .5          .5           -1.2         -.7             .4          .2
September     .5          .4            -.5         -.2            -.2          .1
October      1.0          .9             .0          .4             .3          .4
November      .5          .5            3.2         3.0             .7          .5
December      .5          .5            2.1         1.9            -.1          .0




                                                  *****

                                            PPI Weights Updated
 
With the release of January 2018 Producer Price Index (PPI) data on February 15, 2018, the Bureau 
of Labor Statistics updated PPI value weights to more accurately reflect recent production and 
marketing patterns. The updated weights are based on shipment values from the year 2012. These 
value weights come from the Census of Manufactures, the Census of Mining, the Census of Services, 
and the Census of Agriculture. PPI weights were based on 2007 Census shipment values from 
January 2012 through December 2017.
 
All PPIs were affected by this weight update, including all the industry net output indexes, as well as 
indexes for traditional commodity groupings. In addition, weights were updated from the 2007 to the 
2012 Census for all Final demand-Intermediate demand (FD-ID) indexes, durability of product 
indexes, special commodity-grouping indexes, and inputs to industry indexes. This weight revision 
did not result in changes to the arithmetic reference base for indexes, the dates when PPIs are set to 
100.
 
It is important to note that the basic structures of the PPI commodity and FD-ID classification 
systems did not change as a result of the weight revision. However, PPIs classified according to the 
North American Industry Classification System (NAICS) were updated to reflect 2017 NAICS 
definitions established by the U.S. Census Bureau. The weight update also resulted in shifting 
relative importance values. These shifts impacted aggregate indexes in a manner commensurate with 
the relative gains and losses in value weights from 2007 to 2012.
 
In addition, PPI sample updates normally occurring with the release of October and February data 
were combined and released in conjunction with this weight update. Commodity and FD-ID relative 
importance figures for December 2017 were released on February 13, 2018, two business days prior 
to the release of January 2018 PPI data. This information is available on the PPI website at 
www.bls.gov/ppi or by contacting the PPI Section of Index Analysis and Public Information at ppi-
info@bls.gov or (202)691-7705. 

                                                 *****


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Last Modified Date: February 15, 2018