Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 18-1277 
8:30 a.m. (EDT), Thursday, August 9, 2018

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Media contact:              (202) 691-5902  *  PressOffice@bls.gov   
                               

                                 PRODUCER PRICE INDEXES - JULY 2018


The Producer Price Index for final demand was unchanged in July, seasonally adjusted, the U.S. 
Bureau of Labor Statistics reported today. Final demand prices advanced 0.3 percent in June and 
0.5 percent in May. (See table A.) On an unadjusted basis, the final demand index increased 3.3 
percent for the 12 months ended in July. 

In July, a 0.1-percent rise in the index for final demand goods offset a 0.1-percent decline in 
prices for final demand services.

The index for final demand less foods, energy, and trade services moved up 0.3 percent in July, 
the same as in June. For the 12 months ended in July, prices for final demand less foods, energy, 
and trade services climbed 2.8 percent.

Final Demand

Final demand goods: The index for final demand goods inched up 0.1 percent in July, the same as 
in June. The July advance in prices for final demand goods can be traced to a 0.3-percent rise in the 
index for final demand goods less foods and energy. In contrast, prices for final demand energy fell 
0.5 percent, and the index for final demand foods decreased 0.1 percent. 

Product detail: In July, a major factor in the increase in prices for final demand goods was the index 
for pharmaceutical preparations, which rose 0.7 percent. Prices for eggs for fresh use, fresh fruits and 
melons, motor vehicles, and liquefied petroleum gas also moved higher. Conversely, the electric 
power index fell 1.6 percent. Prices for meats; hay, hayseeds, and oilseeds; and nonferrous scrap also 
decreased. (See table 4.)

Final demand services: Prices for final demand services edged down 0.1 percent in July, the first 
decline since falling 0.2 percent in December 2017. The July decrease is attributable to the index for 
final demand trade services, which moved down 0.8 percent. (Trade indexes measure changes in 
margins received by wholesalers and retailers.) In contrast, prices for final demand services less 
trade, transportation, and warehousing and the index for final demand transportation and 
warehousing services advanced 0.3 percent.

Product detail: Leading the July decline in prices for final demand services, margins for fuels and 
lubricants retailing dropped 12.7 percent. The indexes for machinery and equipment parts and 
supplies wholesaling, food retailing, hospital outpatient care, and airline passenger services also 
moved lower. Conversely, prices for guestroom rental climbed 3.9 percent. The indexes for apparel, 
jewelry, footwear, and accessories retailing; inpatient care; and truck transportation of freight also 
increased.

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

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.

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.

0.0 0.1 0.1 -0.2 0.2 0.1 -0.2 -0.4 -0.6 0.2 2.5 2.3

2018

Jan.

0.5 0.5 0.6 0.1 2.9 0.3 0.5 0.4 -0.2 0.5 2.6 2.5

Feb.

0.2 0.3 0.1 -0.6 0.1 0.3 0.2 0.1 1.0 0.3 2.8 2.7

Mar.(1)

0.2 0.3 0.3 2.2 -2.0 0.3 0.3 -0.1 0.5 0.3 2.9 2.9

Apr.(1)

0.2 0.2 -0.1 -1.0 0.0 0.2 0.2 0.4 0.8 -0.1 2.6 2.5

May

0.5 0.1 1.0 0.1 4.6 0.3 0.3 0.9 0.7 0.0 3.1 2.6

June

0.3 0.3 0.1 -1.1 0.8 0.3 0.4 0.7 0.5 0.3 3.4 2.7

July

0.0 0.3 0.1 -0.1 -0.5 0.3 -0.1 -0.8 0.3 0.3 3.3 2.8

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for March 2018 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in July, prices for processed goods were unchanged, the index for 
unprocessed goods advanced 2.7 percent, and prices for services moved up 0.2 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand was unchanged in July following a 0.7-percent rise in June. In July, prices for processed 
materials less foods and energy advanced 0.3 percent. In contrast, the index for processed energy 
goods fell 1.3 percent, and prices for processed foods and feeds declined 0.9 percent. For the 12 
months ended in July, the index for processed goods for intermediate demand increased 6.8 percent.

Product detail: In July, prices for basic organic chemicals advanced 2.1 percent. The indexes for 
steel mill products; carbon and graphite products for electrical machinery and equipment; liquefied 
petroleum gas; and canned, cooked, smoked, or prepared poultry also moved higher. Conversely, 
prices for commercial electric power fell 2.4 percent. The indexes for diesel fuel, industrial electric 
power, meats, and fabricated structural metal also declined. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand moved up 2.7 percent in July, the largest rise since a 3.6-percent advance in January 2017. 
The July increase can be traced to prices for unprocessed energy materials, which jumped 8.6 
percent. In contrast, the indexes for unprocessed foodstuffs and feedstuffs and for unprocessed 
nonfood materials less energy fell 2.0 percent and 1.2 percent, respectively. For the 12 months ended 
in July, prices for unprocessed goods for intermediate demand rose 8.2 percent, the largest advance 
since an 11.0-percent increase in November 2017.

Product detail: Leading the July increase in the index for unprocessed goods for intermediate 
demand, crude petroleum prices advanced 14.1 percent. The indexes for natural gas, fresh fruits and 
melons, slaughter steers and heifers, corrugated wastepaper, and coal also moved up. Conversely, 
prices for hay, hayseeds, and oilseeds dropped 14.0 percent. The indexes for corn and nonferrous 
scrap 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

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.

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

Dec.

0.3 0.1 0.8 0.2 5.0 1.3 -0.7 3.3 1.8 5.0

2018

Jan.

0.8 0.1 2.1 0.5 4.7 1.9 -0.6 3.5 3.5 3.3

Feb.

0.6 1.2 0.8 0.5 4.8 1.7 2.2 2.3 0.0 5.3

Mar.(1)

-0.1 1.0 -2.9 0.6 4.8 -3.5 -0.2 -9.2 1.2 5.3

Apr.(1)

0.3 0.5 1.0 0.1 4.7 -0.1 -3.6 2.6 0.7 3.2

May

1.5 0.2 4.6 0.8 6.3 2.5 -0.1 6.3 -0.1 6.8

June

0.7 -1.1 1.8 0.7 6.8 -1.0 0.2 -2.1 -0.2 5.8

July

0.0 -0.9 -1.3 0.3 6.8 2.7 -2.0 8.6 -1.2 8.2

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for March 2018 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 advanced 0.2 
percent in July after edging up 0.1 percent in June. Leading the July increase, prices for services less 
trade, transportation, and warehousing for intermediate demand rose 0.3 percent. The index for 
transportation and warehousing services for intermediate demand advanced 0.2 percent. In contrast, 
margins for trade services for intermediate demand declined 0.7 percent. For the 12 months ended in 
July, prices for services for intermediate demand increased 3.0 percent.

Product detail: A major factor in the July increase in prices for services for intermediate demand was 
the index for securities brokerage, dealing, investment advice, and related services, which advanced 
1.5 percent. The indexes for metals, minerals, and ores wholesaling; television advertising time sales; 
business loans (partial); gross rents for retail properties; and legal services also rose. Conversely, 
margins for machinery and equipment parts and supplies wholesaling declined 4.6 percent. The 
indexes for internet advertising sales (excluding internet advertising sold by print publishers) and 
airline passenger 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.)

2017

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.

0.2 -0.3 0.6 0.2 3.2

Dec.

0.2 0.4 -0.1 0.2 2.9

2018

Jan.

0.3 0.4 0.1 0.3 3.2

Feb.

0.3 0.6 0.6 0.3 3.1

Mar.(1)

0.3 0.3 0.4 0.1 3.2

Apr.(1)

0.3 1.2 0.5 0.2 3.1

May

0.3 0.9 0.4 0.1 3.3

June

0.1 0.1 0.2 0.0 2.9

July

0.2 -0.7 0.2 0.3 3.0

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for March 2018 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 edged down 0.1 percent in 
July, the first decline since a 0.3-percent decrease in August 2016. In July, the indexes for both total 
services inputs and total goods inputs to stage 4 intermediate demand fell 0.1 percent. (See table D.) 
Declines in the indexes for machinery and equipment parts and supplies wholesaling, electric power, 
fabricated structural metal, diesel fuel, and meats outweighed increases in the indexes for metals, 
minerals, and ores wholesaling; gross rents for retail properties; fresh fruits and melons; and legal 
services. (See table 6.) For the 12 months ended in July, prices for stage 4 intermediate demand 
climbed 3.7 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand were unchanged in July 
following a 0.5-percent rise in June. In July, the indexes for both total services inputs and total goods 
inputs to stage 3 intermediate demand were unchanged. Advances in the indexes for metals, minerals, 
and ores wholesaling; basic organic chemicals; slaughter steers and heifers; steel mill products; and 
carbon and graphite products for electrical machinery and equipment offset declines in the indexes 
for machinery and equipment parts and supplies wholesaling; jet fuel; hay, hayseeds, and oilseeds; 
slaughter barrows and gilts; and electric power. For the 12 months ended in July, prices for stage 3 
intermediate demand moved up 5.6 percent, the largest 12-month increase since a 5.7-percent rise in 
November 2017.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 1.4 percent, the 
largest advance since moving up 1.4 percent in April 2017. In July, prices for total goods inputs to 
stage 2 intermediate demand rose 2.9 percent, and the index for total services inputs increased 0.3 
percent. Higher prices for crude petroleum; natural gas; steel mill products; plastic resins and 
materials; liquefied petroleum gas; and securities brokerage, dealing, investment advice, and related 
services outweighed decreases in the indexes for hay, hayseeds, and oilseeds; corn; and fuels and 
lubricants retailing. For the 12 months ended in July, prices for stage 2 intermediate demand rose 6.9 
percent, the largest 12-month advance since a 6.9-percent increase in April 2017.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved up 0.2 percent in 
July, the fourth consecutive rise. In July, the index for total services inputs to stage 1 intermediate 
demand advanced 0.3 percent, and prices for total goods inputs inched up 0.1 percent. Increases in 
the indexes for metals, minerals, and ores wholesaling; basic organic chemicals; crude petroleum; 
corrugated wastepaper; carbon and graphite products for electrical machinery and equipment; and 
guestroom rental outweighed decreases in the indexes for diesel fuel, machinery and equipment parts 
and supplies wholesaling, and nonferrous scrap. For the 12 months ended in July, the index for stage 
1 intermediate demand rose 7.3 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

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.

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.

0.1 0.1 0.1 0.3 0.3 0.3 0.6 1.3 0.1 0.5 0.9 0.0

2018

Jan.

0.5 0.8 0.3 0.6 1.0 0.3 0.9 1.5 0.5 1.1 1.9 0.2

Feb.

0.3 0.2 0.3 0.7 1.0 0.3 0.8 1.4 0.3 0.3 0.3 0.3

Mar.(1)

0.3 0.5 0.2 -0.3 -0.7 0.2 -1.2 -3.1 0.3 0.0 -0.2 0.3

Apr.(1)

0.3 0.3 0.3 -0.2 -0.9 0.5 0.7 1.1 0.3 0.3 0.1 0.5

May

0.7 0.9 0.4 1.3 2.3 0.3 1.2 3.2 -0.2 1.2 1.7 0.8

June

0.3 0.5 0.0 0.5 1.1 0.0 -0.1 -0.5 0.2 0.7 1.1 0.1

July

-0.1 -0.1 -0.1 0.0 0.0 0.0 1.4 2.9 0.3 0.2 0.1 0.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for March 2018 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for August 2018 is scheduled to be released on Wednesday, 
September, 12, 2018 at 8:30 a.m. (EDT).

                                            *****
                               Variance Estimates for the PPI

The Producer Price Index (PPI) program recently published variance estimates for 2017. These 
variance estimates measure the uncertainty caused by using a sample, rather than the entire 
population, to calculate PPI indexes. Variance estimates are available on the PPI website at 
www.bls.gov/ppi/ppivariance.htm 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: August 09, 2018