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Economic News Release
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Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 21-1618
8:30 a.m. (ET), Friday, September 10, 2021

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


                           PRODUCER PRICE INDEXES - AUGUST 2021


The Producer Price Index for final demand increased 0.7 percent in August, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 1.0 percent in 
July, the same as in June. (See table A.) On an unadjusted basis, the final demand index rose 8.3 
percent for the 12 months ended in August, the largest advance since 12-month data were first 
calculated in November 2010. 

Leading the August increase in the index for final demand, prices for final demand services rose 
0.7 percent. The index for final demand goods moved up 1.0 percent.

Prices for final demand less foods, energy, and trade services moved up 0.3 percent in August 
after increasing 0.9 percent in July. For the 12 months ended in August, the index for final 
demand less foods, energy, and trade services rose 6.3 percent, the largest advance since 12-
month data were first calculated in August 2014.

Final Demand

Final demand services: Prices for final demand services moved up 0.7 percent in August, the eighth 
consecutive advance. Two-thirds of the broad-based increase in August can be traced to the index for 
final demand trade services, which rose 1.5 percent. (Trade indexes measure changes in margins 
received by wholesalers and retailers.) Prices for final demand transportation and warehousing 
services and for final demand services less trade, transportation, and warehousing climbed 2.8 
percent and 0.1 percent, respectively.

Product detail: Over 30 percent of the August increase in prices for final demand services can be 
traced to a 7.8-percent rise in margins for health, beauty, and optical goods retailing. The indexes for 
transportation of passengers (partial), chemicals and allied products wholesaling, bundled wired 
telecommunications access services, machinery and equipment parts and supplies wholesaling, and 
traveler accommodation services also moved higher. Conversely, prices for hospital outpatient care 
fell 1.5 percent. The indexes for hardware, building materials, and supplies retailing and for 
securities brokerage, dealing, investment advice, and related services also decreased. (See table 4.)

Final demand goods: The index for final demand goods moved up 1.0 percent in August after 
increasing 0.6 percent in July. In August, half of the broad-based advance can be attributed to a 2.9-
percent rise in prices for final demand foods. The indexes for final demand goods less foods and 
energy and for final demand energy also moved higher, 0.6 percent and 0.4 percent, respectively.

Product detail: About a quarter of the August advance in prices for final demand goods can be 
attributed to an 8.5-percent rise in the index for meats. Prices for residential natural gas, industrial 
chemicals, processed young chickens, motor vehicles, and steel mill products also moved higher. In 
contrast, the index for iron and steel scrap decreased 3.7 percent. Prices for diesel fuel and for 
natural, processed, and imitation cheese also moved lower. 

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

2020

Aug.

0.2 0.2 0.4 -0.3 1.0 0.3 0.2 -0.1 -0.8 0.3 -0.3 0.4

Sept.

0.3 0.4 0.4 1.7 -0.3 0.3 0.2 -0.3 0.6 0.4 0.3 0.8

Oct.

0.6 0.2 0.5 2.1 0.5 0.0 0.7 1.5 1.1 0.1 0.6 0.9

Nov.

0.0 0.2 0.4 0.2 1.7 0.3 -0.2 -0.7 -0.5 0.2 0.8 1.0

Dec.

0.3 0.4 0.9 -1.4 4.9 0.5 0.0 -0.7 -0.2 0.4 0.8 1.3

2021

Jan.

1.2 1.0 1.6 1.6 5.1 0.8 1.0 0.8 0.7 1.2 1.6 1.9

Feb.

0.7 0.4 1.6 1.4 6.2 0.5 0.3 0.2 0.8 0.2 3.0 2.3

Mar.

0.8 0.6 1.5 0.6 5.0 0.8 0.3 0.2 1.4 0.4 4.1 3.1

Apr.(1)

1.0 0.8 0.7 1.8 -1.2 1.0 1.2 2.3 3.6 0.4 6.5 4.8

May(1)

0.5 0.5 1.3 2.8 1.4 1.0 0.1 -0.4 1.1 0.2 6.6 5.3

June

1.0 0.5 1.2 0.8 2.1 1.0 0.8 2.1 0.9 0.3 7.3 5.5

July

1.0 0.9 0.6 -2.1 2.6 1.0 1.1 1.7 2.7 0.6 7.8 6.1

Aug.

0.7 0.3 1.0 2.9 0.4 0.6 0.7 1.5 2.8 0.1 8.3 6.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2021 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in August, prices for processed goods advanced 1.0 percent, the index 
for unprocessed goods also increased 1.0 percent, and prices for services rose 0.3 percent. (See tables 
B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved up 1.0 percent in August after rising 1.7 percent in July. Most of the increase in 
August is attributable to prices for processed materials less foods and energy, which advanced 1.3 
percent. The index for processed foods and feeds rose 2.1 percent. Conversely, prices for processed 
energy goods fell 0.6 percent. For the 12 months ended in August, the index for processed goods for 
intermediate demand climbed 23.0 percent, the largest 12-month increase since jumping 23.6 percent 
in February 1975.

Product detail: One-third of the August advance in the index for processed goods for intermediate 
demand can be traced to prices for industrial chemicals, which rose 4.9 percent. The indexes for steel 
mill products; meats; structural, architectural, and pre-engineered metal products; plastic products; 
and industrial electric power also moved higher. In contrast, diesel fuel prices decreased 1.6 percent. 
The indexes for softwood lumber and for natural, processed, and imitation cheese also declined. (See 
table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand rose 1.0 percent in August, the fifth consecutive increase. The advance in August is 
attributable to prices for unprocessed foodstuffs and feedstuffs, which jumped 3.8 percent. 
Conversely, the index for unprocessed energy materials fell 0.2 percent, while prices for unprocessed 
nonfood materials less energy were unchanged. For the 12 months ended in August, the index for 
unprocessed goods for intermediate demand surged 50.1 percent.

Product detail: In August, an 11.0-percent increase in the index for slaughter poultry was a major 
factor in the rise in prices for unprocessed goods for intermediate demand. The indexes for natural 
gas, corn, wheat, slaughter steers and heifers, and corrugated recyclable paper also moved higher. In 
contrast, crude petroleum prices decreased 10.1 percent. The indexes for iron and steel scrap and for 
raw milk also declined. 

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.)

2020

Aug.

0.9 -0.7 2.6 0.8 -2.3 4.0 1.8 7.9 3.3 -9.1

Sept.

0.6 0.6 -0.3 0.8 -1.6 5.2 5.8 5.2 4.3 -4.1

Oct.

0.9 1.7 3.1 0.3 -0.9 1.3 5.2 -3.2 0.3 -2.4

Nov.

0.9 2.0 3.4 0.2 -0.2 6.3 2.3 15.3 2.8 0.6

Dec.

1.4 -0.6 2.6 1.4 1.5 2.1 -3.6 6.5 5.3 1.3

2021

Jan.

1.8 0.9 1.9 1.8 3.4 5.3 2.7 5.4 8.6 7.9

Feb.

2.9 2.2 6.7 2.0 7.1 11.9 2.4 33.6 -0.6 29.2

Mar.

3.5 1.5 7.9 2.6 12.4 -4.2 1.6 -13.5 1.9 34.8

Apr.(1)

1.9 2.8 -2.8 3.0 18.7 2.0 8.7 -4.8 2.2 59.2

May(1)

2.5 2.7 3.8 2.2 21.9 7.3 3.8 10.0 9.0 57.9

June

1.9 1.7 0.2 2.3 22.6 2.6 0.7 5.8 0.9 54.1

July

1.7 -1.6 4.0 1.6 22.9 1.4 -2.5 6.5 0.0 55.0

Aug.

1.0 2.1 -0.6 1.3 23.0 1.0 3.8 -0.2 0.0 50.1

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2021 have been revised to reflect the availability of late reports and corrections by respondents.

Services for intermediate demand: The index for services for intermediate demand rose 0.3 percent 
in August, the ninth consecutive increase. In August, 80 percent of the advance can be traced to 
margins for trade services for intermediate demand, which moved up 1.1 percent. Prices for 
transportation and warehousing services for intermediate demand also rose 1.1 percent. Conversely, 
the index for services less trade, transportation, and warehousing for intermediate demand fell 0.2 
percent. For the 12 months ended in August, prices for services for intermediate demand climbed 8.6 
percent.

Product detail: Nearly 60 percent of the August increase in prices for services for intermediate 
demand can be attributed to margins for machinery and equipment parts and supplies wholesaling, 
which rose 2.8 percent. The indexes for metals, minerals, and ores wholesaling; transportation of 
passengers (partial); building materials, paint, and hardware wholesaling; nonresidential real estate 
services; and chemicals and allied products wholesaling also advanced. In contrast, prices for 
television advertising time sales fell 9.0 percent. The indexes for hardware, building material, and 
supplies retailing and for warehousing, storage, and related services also declined. 

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.)

2020

Aug.

0.8 2.0 -0.1 0.8 -0.4

Sept.

1.1 1.6 0.9 0.8 0.6

Oct.

0.7 1.0 1.3 0.5 1.7

Nov.

0.0 -0.2 -0.2 0.0 1.8

Dec.

0.7 2.4 -0.3 0.4 2.1

2021

Jan.

1.1 1.3 0.5 1.2 3.0

Feb.

0.3 0.1 1.2 0.1 3.6

Mar.

0.6 1.2 0.9 0.5 4.3

Apr.(1)

1.3 2.7 2.3 0.6 7.3

May(1)

0.2 -0.1 1.1 0.1 7.9

June

1.1 2.5 2.1 0.4 8.7

July

1.0 2.1 0.6 0.7 9.2

Aug.

0.3 1.1 1.1 -0.2 8.6

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2021 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand advanced 0.8 percent in 
August following a 1.1-percent increase in July. In August, the index for total goods inputs to stage 4 
intermediate demand rose 0.9 percent, and prices for total services inputs moved up 0.7 percent. (See 
table D.) Increases in the indexes for meats; machinery and equipment parts and supplies 
wholesaling; metals, minerals, and ores wholesaling; structural, architectural, and pre-engineered 
metal products; steel mill products; and nonresidential real estate services outweighed declines in the 
indexes for securities brokerage, dealing, investment advice, and related services; softwood lumber; 
and hardware, building materials, and supplies retailing. (See table 6.) For the 12 months ended in 
August, prices for stage 4 intermediate demand rose 12.1 percent, the largest advance since 12-month 
data were first calculated in November 2010. 

Stage 3 intermediate demand: Prices for stage 3 intermediate demand advanced 1.0 percent in 
August following a 1.1-percent increase in July. In August, the index for total goods inputs to stage 3 
intermediate demand rose 1.9 percent, and prices for total services inputs were unchanged. Advances 
in the indexes for steel mill products; slaughter poultry; metals, minerals, and ores wholesaling; 
industrial chemicals; corn; and slaughter steers and heifers outweighed decreasing prices for 
television advertising time sales, raw milk, and softwood lumber. For the 12 months ended in 
August, the index for stage 3 intermediate demand moved up 20.2 percent, the same as in July.

Stage 2 intermediate demand: The index for stage 2 intermediate demand advanced 0.4 percent in 
August, the fifth consecutive increase. In August, prices for total goods inputs to stage 2 intermediate 
demand rose 0.5 percent, and the index for total services inputs moved up 0.3 percent. Increases in 
the indexes for gas fuels; industrial chemicals; steel mill products; machinery and equipment parts 
and supplies wholesaling; transportation of passengers (partial); and oilseeds outweighed decreasing 
prices for crude petroleum, television advertising time sales, and softwood lumber. For the 12 months 
ended in August, the index for stage 2 intermediate demand advanced 21.8 percent. 

Stage 1 intermediate demand: Prices for stage 1 intermediate demand rose 0.9 percent in August 
following a 1.9-percent increase in July. In August, the index for total goods inputs to stage 1 
intermediate demand moved up 1.3 percent, and prices for total services inputs advanced 0.5 percent. 
Increases in the indexes for industrial chemicals; steel mill products; metals, minerals, and ores 
wholesaling; transportation of passengers (partial); building materials, paint, and hardware 
wholesaling; and structural, architectural, and pre-engineered metal products outweighed decreases 
in the indexes for hardware, building materials, and supplies retailing; securities brokerage, dealing, 
investment advice, and related services; and diesel fuel. For the 12 months ended in August, prices 
for stage 1 intermediate demand rose 21.1 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

2020

Aug.

0.8 0.4 1.1 0.9 1.1 0.8 1.5 3.2 0.5 1.3 1.8 0.7

Sept.

0.8 0.5 1.1 0.9 0.9 0.8 1.8 3.1 0.8 1.3 1.3 1.2

Oct.

0.4 0.5 0.5 1.1 1.4 0.7 0.5 0.3 0.8 0.7 0.9 0.5

Nov.

0.2 0.4 0.0 0.7 1.3 0.2 1.8 5.3 -0.4 1.1 2.3 -0.2

Dec.

0.9 0.7 1.1 1.1 1.7 0.7 1.8 3.9 0.3 2.8 4.2 1.1

2021

Jan.

1.4 1.5 1.3 1.8 1.9 1.5 2.6 4.9 0.9 1.7 2.3 1.2

Feb.

0.8 1.5 0.3 2.2 4.2 0.5 5.4 12.4 0.2 1.6 3.1 0.2

Mar.

1.4 2.1 0.8 2.4 4.5 0.6 -1.5 -3.9 0.6 2.2 3.7 0.9

Apr.(1)

1.5 1.7 1.2 3.0 4.9 1.3 0.4 -0.5 1.2 1.7 1.9 1.7

May(1)

0.9 2.0 0.1 1.4 2.5 0.4 2.9 6.3 0.1 2.0 3.6 0.3

June

1.1 1.5 0.6 2.1 2.4 1.6 2.1 3.2 1.1 1.6 1.6 1.7

July

1.1 1.1 1.2 1.1 1.5 0.8 1.7 3.1 0.5 1.9 2.2 1.7

Aug.

0.8 0.9 0.7 1.0 1.9 0.0 0.4 0.5 0.3 0.9 1.3 0.5

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2021 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for September 2021 is scheduled to be released on Thursday, October 14, 2021 
at 8:30 a.m. (ET).

                                                 *****

            PPI to Publish Interim Index Values and Publish All Indexes to 3 Decimal Places
      
Effective with the release of November 2021 Producer Price Index (PPI) data, on December 14, 2021, the 
Bureau of Labor Statistics will publish interim index values for all preliminary PPI data, starting with 
values for August through October 2021. Within PPI, interim indexes are defined as recalculated indexes 
for the 3 months between the initial publication and final revision of PPI data. With this modification, 
data within the 3-month interim revision period will be updated and published on a monthly basis. This 
replaces the current policy of only publishing revised data once, when the data have been finalized 4 
months after original publication. PPI data will continue to be finalized 4 months after initial 
publication. 
      
The publication of interim index values will allow for greater transparency regarding PPI revisions, and 
will align PPI official index publication with Bureau of Economic Analysis use of PPI interim index data 
as an input to Gross Domestic Product calculations. 

In addition, effective with the November 2021 data release in December 2021, the PPI will begin 
publishing index values to 3 decimal places of precision, starting with finalized data for July 2021. 
The publication of index levels to 3 decimal places will allow data users greater precision in percent
change calculations. Published PPI percent change calculations will continue to be rounded to one 
decimal place. The change to 3 decimal precision for indexes will apply to all PPI data: Industry, 
Commodity, FD-ID, and Input indexes. 

This change to the level of published precision will impact only the presentation of index numbers. 
Index values will continue to be calculated from underlying price information in the same manner as in 
the past, and no systematic upward or downward effect on the data will be introduced. With the 
implementation of this change, official PPI data prior to July 2021 will not be revised to reflect 
greater precision.

As a result of the publication of interim index values and index data to 3 decimal places of precision, 
effective with the publication of November 2021 PPI data in December 2021, PPI will introduce redesigned 
publication tables for both the PPI News Release and the PPI Detailed Report. For further information on 
these publication table changes see: www.bls.gov/ppi/notices/2021/ppi-to-publish-interim-index-values-
to-3-decimal-places.htm,or contact the PPI Section of Index Analysis and Public Information at 
ppi-info@bls.gov or (202) 691-7705. 

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Last Modified Date: September 10, 2021