Producer Price Index News Release summary

Transmission of material in this release is embargoed until                          USDL 18-1627 
8:30 a.m. (EDT), Wednesday, October 10, 2018

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                             PRODUCER PRICE INDEXES - SEPTEMBER 2018


The Producer Price Index for final demand increased 0.2 percent in September, seasonally 
adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.1 
percent in August and were unchanged in July. (See table A.) On an unadjusted basis, the final 
demand index advanced 2.6 percent for the 12 months ended in September.

In September, the rise in the final demand index can be traced to a 0.3-percent increase in prices 
for final demand services. In contrast, the index for final demand goods decreased 0.1 percent.

The index for final demand less foods, energy, and trade services moved up 0.4 percent in 
September, the largest rise since a 0.5-percent increase in January. For the 12 months ended in 
September, prices for final demand less foods, energy, and trade services advanced 2.9 percent.

Final Demand

Final demand services: The index for final demand services increased 0.3 percent in September 
following two consecutive declines of 0.1 percent. The broad-based advance was led by a 1.8-percent 
jump in the index for final demand transportation and warehousing services. Prices for final demand 
services less trade, transportation, and warehousing rose 0.3 percent, and the index for final demand 
trade services inched up 0.1 percent. (Trade indexes measure changes in margins received by 
wholesalers and retailers.)

Product detail: In September, over one-third of the advance in prices for final demand services can 
be traced to the index for airline passenger services, which rose 5.5 percent. The indexes for food and 
alcohol wholesaling; deposit services (partial); outpatient care (partial); apparel wholesaling; and 
lawn, garden, farm equipment, and supplies retailing also moved higher. Conversely, margins for 
apparel, jewelry, footwear, and accessories retailing fell 2.5 percent. The indexes for automotive 
fuels and lubricants retailing and for traveler accommodation services also declined. (See table 4.)

Final demand goods: The index for final demand goods edged down 0.1 percent in September, the 
first decrease since a 0.5-percent drop in May 2017. Leading the September decline, prices for final 
demand energy fell 0.8 percent. The index for final demand foods decreased 0.6 percent. In contrast, 
prices for final demand goods less foods and energy rose 0.2 percent. 

Product detail: Leading the September decline in the index for final demand goods, gasoline prices 
fell 3.5 percent. The indexes for electric power; iron and steel scrap; canned, cooked, smoked, or 
prepared poultry; and fresh and dry vegetables also moved down. Conversely, the index for light 
motor trucks rose 0.8 percent. Prices for liquefied petroleum gas, pharmaceutical preparations, and 
unprocessed and prepared seafood 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

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.

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.

0.2 0.2 0.0 -1.3 0.4 0.3 0.2 0.3 0.7 0.0 2.7 2.6

May(1)

0.5 0.3 0.9 0.4 3.7 0.2 0.3 0.5 0.7 0.2 3.1 2.7

June(1)

0.3 0.1 0.1 -1.2 1.3 0.3 0.4 1.2 0.7 0.0 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

Aug.

-0.1 0.1 0.0 -0.6 0.4 0.0 -0.1 -0.9 -0.6 0.3 2.8 2.9

Sept.

0.2 0.4 -0.1 -0.6 -0.8 0.2 0.3 0.1 1.8 0.3 2.6 2.9

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

Intermediate Demand by Commodity Type

Within intermediate demand in September, prices for processed goods were unchanged, the index for 
unprocessed goods increased 1.7 percent, and prices for services moved up 0.5 percent. (See tables B 
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate 
demand was unchanged in September, the same as in both August and July. In September, prices for 
processed materials less foods and energy advanced 0.2 percent. In contrast, the index for processed 
foods and feeds decreased 1.4 percent, and prices for processed energy goods declined 0.2 percent. 
For the 12 months ended in September, the index for processed goods for intermediate demand 
climbed 5.8 percent.

Product detail: In September, prices for primary basic organic chemicals rose 1.9 percent. The 
indexes for liquefied petroleum gas, diesel fuel, plastic resins and materials, and beef and veal also 
increased. Conversely, prices for prepared animal feeds moved down 3.3 percent. The indexes for 
gasoline, electric power, residual fuels, and ethanol also fell. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate 
demand advanced 1.7 percent in September following a 5.8-percent decline in August. Most of the 
increase is attributable to a 4.7-percent rise in the index for unprocessed energy materials. Prices for 
unprocessed foodstuffs and feedstuffs moved up 0.6 percent. In contrast, the index for unprocessed 
nonfood materials less energy declined 2.8 percent. For the 12 months ended in September, prices for 
unprocessed goods for intermediate demand rose 4.3 percent.

Product detail: Leading the September increase in the index for unprocessed goods for intermediate 
demand, prices for crude petroleum advanced 8.7 percent. The indexes for slaughter steers and 
heifers; natural gas; raw milk; unprocessed finfish; and construction sand, gravel, and crushed stone 
also moved higher. Conversely, prices for iron and steel scrap decreased 6.8 percent. The indexes for 
hay, hayseeds, and oilseeds and coal 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

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.

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

Apr.

0.4 0.3 1.1 0.3 4.8 0.9 -2.4 4.1 0.6 4.2

May(1)

1.2 0.4 3.5 0.8 6.2 2.2 0.2 5.1 -0.2 7.4

June(1)

0.8 -1.1 2.8 0.5 6.8 -1.6 -1.3 -2.4 0.0 5.8

July

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

Aug.

0.0 -0.8 -0.3 0.2 6.3 -5.8 -5.2 -7.9 -1.9 2.9

Sept.

0.0 -1.4 -0.2 0.2 5.8 1.7 0.6 4.7 -2.8 4.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 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 climbed 0.5 
percent in September, the largest increase since rising 0.6 percent in October 2017. In September, 
half of the broad-based advance can be traced to prices for services less trade, transportation, and 
warehousing for intermediate demand, which moved up 0.3 percent. The index for transportation and 
warehousing services for intermediate demand increased 1.0 percent, and margins for trade services 
for intermediate demand rose 0.7 percent. For the 12 months ended in September, prices for services 
for intermediate demand moved up 3.3 percent, the largest advance since climbing 3.3 percent in 
October 2017.

Product detail: In September, a major factor in the increase in prices for services for intermediate 
demand was the index for deposit services (partial), which jumped 4.1 percent. The indexes for food 
and alcohol wholesaling, machinery and equipment parts and supplies wholesaling, airline passenger 
services, accounting services (partial), and portfolio management also moved higher. In contrast, 
gross rents for retail properties fell 2.3 percent. The indexes for cable network advertising time sales 
and for paper and plastics products wholesaling 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

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.

0.3 0.3 0.4 0.1 3.2

Apr.

0.3 0.8 0.4 0.2 3.0

May(1)

0.3 0.4 0.5 0.2 3.1

June(1)

0.2 1.0 0.2 -0.1 2.9

July

0.2 -0.7 0.2 0.3 3.0

Aug.

0.1 -1.1 -0.1 0.5 2.9

Sept.

0.5 0.7 1.0 0.3 3.3

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for May 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 advanced 0.3 percent in 
September after no change in August. In September, the index for total services inputs to stage 4 
intermediate demand rose 0.5 percent, while prices for total goods inputs were unchanged. (See table 
D.) Increases in the indexes for machinery and equipment parts and supplies wholesaling, food and 
alcohol wholesaling, portfolio management, deposit services (partial), diesel fuel, and airline 
passenger services outweighed decreases in the indexes for gross rents for retail properties, electric 
power, and gasoline. (See table 6.) For the 12 months ended in September, prices for stage 4 
intermediate demand moved up 3.6 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand rose 0.3 percent in 
September following a 0.8-percent decline in August. In September, the index for total services 
inputs to stage 3 intermediate demand moved up 0.4 percent, and prices for total goods inputs 
increased 0.2 percent. Advances in the indexes for food and alcohol wholesaling; slaughter steers and 
heifers; raw milk; machinery and equipment parts and supplies wholesaling; primary basic organic 
chemicals; and courier, messenger, and U.S. postal services outweighed decreases in prices for 
gasoline, slaughter chickens, and gross rents for retail properties. For the 12 months ended in 
September, the index for stage 3 intermediate demand rose 4.4 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 0.9 percent in 
September after falling 1.2 percent in August. In September, prices for total goods inputs to stage 2 
intermediate demand jumped 1.9 percent, and the index for total services inputs moved up 0.2 
percent. Advances in prices for crude petroleum, gas fuels, airline passenger services, plastic resins 
and materials, accounting services (partial), and portfolio management outweighed declines in the 
indexes for cable network advertising time sales; hay, hayseeds, and oilseeds; and prepared animal 
feeds. For the 12 months ended in September, prices for stage 2 intermediate demand rose 5.8 
percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand was unchanged in 
September following a 0.5-percent decrease in August. In September, a 0.6-percent increase in prices 
for total services inputs to stage 1 intermediate demand offset a 0.4-percent decline in the index for 
total goods inputs. Prices for airline passenger services, diesel fuel, crude petroleum, primary basic 
organic chemicals, and deposit services (partial) advanced, while the indexes for iron and steel scrap; 
prepared animal feeds; gasoline; electric power; and metals, minerals, and ores wholesaling 
decreased. For the 12 months ended in September, prices for stage 1 intermediate demand rose 5.5 
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

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.

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.

0.3 0.3 0.3 0.1 -0.3 0.3 0.8 1.9 0.2 0.4 0.5 0.3

May(1)

0.5 0.9 0.2 1.0 1.9 0.3 1.3 2.8 0.1 1.0 1.4 0.7

June(1)

0.4 0.5 0.3 0.5 0.8 0.3 -0.4 -0.9 0.0 0.8 1.0 0.3

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

Aug.

0.0 -0.1 0.2 -0.8 -1.5 0.1 -1.2 -2.8 0.1 -0.5 -0.8 -0.2

Sept.

0.3 0.0 0.5 0.3 0.2 0.4 0.9 1.9 0.2 0.0 -0.4 0.6

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

________________
The Producer Price Index for October 2018 is scheduled to be released on Friday, 
November 9, 2018 at 8:30 a.m. (EST).

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Last Modified Date: October 10, 2018