Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 18-0541 
8:30 a.m. (EDT), Tuesday, April 10, 2018

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                             PRODUCER PRICE INDEXES - MARCH 2018


The Producer Price Index for final demand advanced 0.3 percent in March, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.2 percent in 
February and 0.4 percent in January. (See table A.) On an unadjusted basis, the final demand 
index increased 3.0 percent for the 12 months ended in March.

In March, 70 percent of the rise in the final demand index is attributable to a 0.3-percent advance 
in prices for final demand services. The index for final demand goods also climbed 0.3 percent.

The index for final demand less foods, energy, and trade services rose 0.4 percent in March, the 
same as in both February and January. For the 12 months ended in March, prices for final 
demand less foods, energy, and trade services increased 2.9 percent, the largest advance since 
12-month percent change data were available in August 2014.

Final Demand

Final demand services: Prices for final demand services moved up 0.3 percent in March, the same 
as in both February and January. Over 70 percent of the broad-based advance in March can be traced 
to the index for final demand services less trade, transportation, and warehousing, which climbed 0.3 
percent. Prices for final demand transportation and warehousing services rose 0.6 percent, and the 
index for final demand trade services increased 0.2 percent. (Trade indexes measure changes in 
margins received by wholesalers and retailers.)

Product detail: A major factor in the March advance in prices for final demand services was the 
index for outpatient care (partial), which climbed 0.4 percent. The indexes for machinery, equipment, 
parts, and supplies wholesaling; cable and satellite subscriber services; airline passenger services; 
food and alcohol wholesaling; and hospital inpatient care also moved higher. In contrast, margins for 
automotive fuels and lubricants retailing fell 10.4 percent. The indexes for apparel, footwear, and 
accessories retailing and wireless telecommunications services also decreased. (See table 4.)

Final demand goods: Prices for final demand goods moved up 0.3 percent in March after edging 
down 0.1 percent in February. Most of the increase can be traced to prices for final demand foods, 
which advanced 2.2 percent. The index for final demand goods less foods and energy climbed 0.3 
percent. Conversely, prices for final demand energy declined 2.1 percent.

Product detail: Over half of the March increase in the index for final demand goods is attributable to 
a 31.5-percent jump in prices for fresh and dry vegetables. The indexes for chicken eggs, meats, 
unprocessed finfish, motor vehicles, and iron and steel scrap also advanced. In contrast, prices for 
gasoline fell 3.7 percent. The indexes for primary basic organic chemicals and for fresh fruits and 
melons 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

2017

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.

0.4 0.4 0.3 0.3 0.2 0.3 0.5 0.9 0.7 0.4 2.8 2.4

Nov.(1)

0.4 0.2 0.8 0.2 3.5 0.3 0.1 -0.3 0.9 0.2 3.0 2.4

Dec.(1)

0.1 0.1 0.1 -0.1 0.3 0.2 0.0 -0.1 -1.0 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

Feb.

0.2 0.4 -0.1 -0.4 -0.5 0.2 0.3 -0.2 0.9 0.3 2.8 2.7

Mar.

0.3 0.4 0.3 2.2 -2.1 0.3 0.3 0.2 0.6 0.3 3.0 2.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2017 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in March, prices for processed goods decreased 0.3 percent, the 
index for unprocessed goods fell 4.8 percent, and prices for services advanced 0.3 percent. (See 
tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand moved down 0.3 percent in March, the largest decline since a 0.9-percent drop in 
February 2016. The March decrease can be traced to prices for processed energy goods, which 
fell 3.1 percent. Conversely, the index for processed materials less foods and energy increased 
0.3 percent, and prices for processed foods and feeds rose 1.4 percent. For the 12 months ended 
in March, the index for processed goods for intermediate demand climbed 4.6 percent. 

Product detail: A major factor in the March decline in prices for processed goods for 
intermediate demand was the index for utility natural gas, which dropped 7.3 percent. Prices for 
primary basic organic chemicals, electric power, gasoline, diesel fuel, and jet fuel also moved 
lower. In contrast, the index for steel mill products rose 1.9 percent. Prices for fabricated 
structural metal products and prepared animal feeds also increased. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for 
intermediate demand moved down 4.8 percent in March, the largest decrease since a 4.9-percent 
decline in November 2015. Most of the March drop is attributable to prices for unprocessed 
energy materials, which fell 11.6 percent. In addition, the index for unprocessed foodstuffs and 
feedstuffs declined 1.0 percent. Conversely, prices for unprocessed nonfood materials less 
energy advanced 1.5 percent. For the 12 months ended in March, the index for unprocessed 
goods for intermediate demand increased 4.2 percent.

Product detail: Leading the March decrease in the index for unprocessed goods for intermediate 
demand, natural gas prices dropped 32.1 percent. The indexes for slaughter hogs, slaughter steers 
and heifers, raw milk, slaughter poultry, and wastepaper also moved lower. In contrast, prices for 
iron and steel scrap rose 4.3 percent. The indexes for crude petroleum and unprocessed finfish 
also increased.

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

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.

0.6 0.5 1.6 0.4 4.8 0.5 1.2 1.8 -2.6 8.5

Nov.(1)

0.8 -0.2 2.5 0.5 5.4 2.6 2.5 4.7 -0.2 11.0

Dec.(1)

0.3 0.3 0.4 0.3 5.1 1.5 -1.0 4.8 1.5 5.2

2018

Jan.

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

Feb.

0.7 1.2 0.8 0.7 4.8 2.8 2.1 5.4 -0.3 5.6

Mar.

-0.3 1.4 -3.1 0.3 4.6 -4.8 -1.0 -11.6 1.5 4.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2017 have been revised to reflect the availability of late reports and corrections by respondents.

Services for intermediate demand: Prices for services for intermediate demand advanced 0.3 
percent in March after rising 0.5 percent in the previous month. Nearly three-quarters of the 
broad-based increase in March can be traced to the index for trade services for intermediate 
demand, which climbed 1.7 percent. Prices for transportation and warehousing services for 
intermediate demand and for services less trade, transportation, and warehousing for 
intermediate demand advanced 0.5 percent and 0.1 percent, respectively. For the 12 months 
ended in March, the index for services for intermediate demand rose 3.2 percent.

Product detail: In March, over 40 percent of the increase in the index for services for 
intermediate demand can be traced to margins for machinery and equipment parts and supplies 
wholesaling, which moved up 3.6 percent. The indexes for hardware, building materials, and 
supplies retailing; metals, minerals, and ores wholesaling; legal services; paper and plastics 
products wholesaling; and services related to securities brokerage and dealing (partial) also 
advanced. Conversely, prices for television advertising time sales declined 2.6 percent. The 
indexes for securities brokerage, dealing, and investment advice and furnishings wholesaling 
also moved lower.

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

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.

0.6 1.0 0.6 0.6 3.3

Nov.(1)

0.2 -0.3 0.6 0.2 3.2

Dec.(1)

0.1 0.5 -0.3 0.1 2.9

2018

Jan.

0.1 -0.3 0.3 0.1 2.9

Feb.

0.5 0.1 0.5 0.5 2.9

Mar.

0.3 1.7 0.5 0.1 3.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2017 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 0.5 percent in 
March, the third straight increase. In March, the index for total services inputs to stage 4 
intermediate demand rose 0.7 percent, and prices for total goods inputs moved up 0.5 percent. 
(See table D.) Increases in the indexes for machinery and equipment parts and supplies 
wholesaling; hardware, building materials, and supplies retailing; unprocessed finfish; ready-mix 
concrete; metals, minerals, and ores wholesaling; and legal services outweighed declines in 
prices for electric power, primary basic organic chemicals, and nonresidential property 
management fees. (See table 6.) For the 12 months ended in March, prices for stage 4 
intermediate demand moved up 3.6 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand fell 0.5 percent in 
March, the first decline since inching down 0.1-percent in July 2017. In March, prices for total 
goods inputs to stage 3 intermediate demand decreased 1.4 percent. In contrast, the index for 
total services inputs climbed 0.4 percent. Declining prices for primary basic organic chemicals, 
slaughter hogs, slaughter steers and heifers, gasoline, jet fuel, and raw milk outweighed increases 
in the indexes for machinery and equipment parts and supplies wholesaling, ungraded chicken 
eggs, and slaughter cows and bulls. For the 12 months ended in March, prices for stage 3 
intermediate demand climbed 3.8 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand decreased 1.7 
percent in March, the largest drop since a 4.3-percent decline in January 2015. In March, prices 
for total goods inputs to stage 2 intermediate demand fell 4.0 percent. Conversely, the index for 
total services inputs moved up 0.2 percent. Lower prices for gas fuels; primary basic organic 
chemicals; utility natural gas; securities brokerage, dealing, and investment advice; commissions 
from sales of insurance; and wireless telecommunication services outweighed advances in the 
indexes for hardware, building materials, and supplies retailing; crude petroleum; and steel mill 
products. For the 12 months ended in March, prices for stage 2 intermediate demand rose 4.3 
percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved down 0.2 percent 
in March, the first decrease since a 0.6-percent decline in August 2016. In March, the index for 
total goods inputs to stage 1 intermediate demand fell 0.6 percent. In contrast, prices for total 
services inputs rose 0.3 percent. Decreases in the indexes for primary basic organic chemicals, 
gas fuels, diesel fuel, wastepaper, electric power, and wireless telecommunication services 
outweighed rising indexes for machinery and equipment parts and supplies wholesaling; iron and 
steel scrap; and metals, minerals, and ores wholesaling. For the 12 months ended in March, 
prices for stage 1 intermediate demand moved up 5.2 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

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.

0.5 0.4 0.7 0.8 0.8 0.7 0.7 0.8 0.5 0.5 0.3 0.9

Nov.(1)

0.4 0.6 0.2 1.0 1.8 0.1 1.0 1.7 0.3 0.7 1.4 -0.1

Dec.(1)

0.0 0.1 0.0 0.3 0.4 0.2 0.7 1.7 0.1 0.6 1.0 0.1

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

Feb.

0.3 0.2 0.4 0.7 1.0 0.3 1.3 2.4 0.5 0.5 0.5 0.5

Mar.

0.5 0.5 0.7 -0.5 -1.4 0.4 -1.7 -4.0 0.2 -0.2 -0.6 0.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 2017 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for April 2018 is scheduled to be released on Wednesday, May 9, 
2018 at 8:30 a.m. (EDT).


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Last Modified Date: April 10, 2018