Transmission of material in this release is embargoed until USDL 23-2423
8:30 a.m. (ET) Wednesday, November 15, 2023
Technical information: (202) 691-7705 * ppi-info@bls.gov * www.bls.gov/ppi
Media contact: (202) 691-5902 * PressOffice@bls.gov
PRODUCER PRICE INDEXES - OCTOBER 2023
The Producer Price Index for final demand fell 0.5 percent in October, seasonally adjusted, after
advancing 0.4 percent in September, the U.S. Bureau of Labor Statistics reported today. (See
table A.) The October decline is the largest decrease in final demand prices since a 1.2-percent
drop in April 2020. On an unadjusted basis, the index for final demand rose 1.3 percent for the
12 months ended in October.
In October, the index for final demand goods fell 1.4 percent. Prices for final demand services
were unchanged.
The index for final demand less foods, energy, and trade services advanced 0.1 percent in
October, the fifth consecutive rise. For the 12 months ended in October, prices for final demand
less foods, energy, and trade services moved up 2.9 percent.
Final Demand
Final demand goods: Prices for final demand goods moved down 1.4 percent in October, the first
decrease since falling 1.5 percent in May. A major factor in the October decline was the index for
final demand energy, which dropped 6.5 percent. Prices for final demand foods fell 0.2 percent.
Conversely, the index for final demand goods less foods and energy edged up 0.1 percent.
Product detail: Over 80 percent of the October decline in the index for final demand goods is
attributable to a 15.3-percent drop in prices for gasoline. The indexes for diesel fuel; hay, hayseeds,
and oilseeds; home heating oil; liquefied petroleum gas; and light motor trucks also fell. (In
accordance with usual practice, most new-model-year passenger cars and light motor trucks were
introduced into the PPI in October. See Report on Quality Changes for 2024 Model Vehicles at
www.bls.gov/web/ppi/ppimotveh.htm.) In contrast, prices for tobacco products increased 2.4 percent.
The indexes for butter and for residual fuels also moved up. (See table 2.)
Final demand services: Prices for final demand services were unchanged in October following six
consecutive advances. In October, increases of 1.5 percent in the index for final demand
transportation and warehousing services and 0.1 percent in prices for final demand services less
trade, transportation, and warehousing offset a 0.7-percent decline in margins for final demand trade
services. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: Within the index for final demand services in October, prices for airline passenger
services rose 3.1 percent. The indexes for chemicals and allied products wholesaling, inpatient care,
outpatient care (partial), and truck transportation of freight also increased. Conversely, margins for
machinery and vehicle wholesaling declined 2.9 percent. The indexes for apparel, footwear, and
accessories retailing; portfolio management; traveler accommodation services; and health, beauty,
and optical goods retailing also fell.
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 |
2022 |
|
Oct. |
0.3 |
0.2 |
0.4 |
0.7 |
1.5 |
0.0 |
0.2 |
0.2 |
0.0 |
0.2 |
8.2 |
5.5 |
Nov. |
0.4 |
0.4 |
0.3 |
3.3 |
-2.3 |
0.3 |
0.4 |
0.5 |
-0.4 |
0.5 |
7.4 |
4.9 |
Dec. |
-0.3 |
0.2 |
-1.4 |
-0.9 |
-6.3 |
0.1 |
0.2 |
0.3 |
0.0 |
0.2 |
6.4 |
4.7 |
2023 |
|
Jan. |
0.4 |
0.5 |
1.3 |
-1.3 |
5.4 |
0.6 |
0.0 |
-0.8 |
-0.5 |
0.5 |
5.7 |
4.4 |
Feb. |
0.0 |
0.3 |
-0.4 |
-2.3 |
-0.8 |
0.3 |
0.2 |
-0.2 |
-0.8 |
0.4 |
4.7 |
4.5 |
Mar. |
-0.4 |
0.1 |
-1.1 |
0.2 |
-6.1 |
0.2 |
-0.1 |
-0.6 |
-0.7 |
0.2 |
2.7 |
3.7 |
Apr. |
0.2 |
0.2 |
0.1 |
-0.4 |
0.7 |
0.1 |
0.2 |
0.4 |
-2.5 |
0.5 |
2.3 |
3.4 |
May |
-0.3 |
0.0 |
-1.5 |
-1.0 |
-6.9 |
0.1 |
0.2 |
0.8 |
-0.5 |
0.0 |
1.1 |
2.9 |
June |
0.1 |
0.3 |
0.0 |
-0.3 |
0.8 |
-0.2 |
0.1 |
-0.7 |
0.0 |
0.5 |
0.3 |
2.9 |
July |
0.6 |
0.3 |
0.3 |
0.4 |
0.8 |
0.0 |
0.8 |
1.6 |
0.3 |
0.6 |
1.2 |
3.0 |
Aug. |
0.8 |
0.2 |
1.9 |
-0.3 |
10.2 |
0.1 |
0.3 |
0.3 |
-0.1 |
0.3 |
2.1 |
3.0 |
Sept. |
0.4 |
0.3 |
0.8 |
0.7 |
3.1 |
0.2 |
0.2 |
-0.1 |
0.2 |
0.3 |
2.2 |
3.0 |
Oct. |
-0.5 |
0.1 |
-1.4 |
-0.2 |
-6.5 |
0.1 |
0.0 |
-0.7 |
1.5 |
0.1 |
1.3 |
2.9 |
Intermediate Demand by Commodity Type
Within intermediate demand in October, prices for processed goods fell 0.9 percent, the index for
unprocessed goods declined 1.4 percent, and prices for services were unchanged. (See tables B and
C.)
Processed goods for intermediate demand: Prices for processed goods for intermediate demand
moved down 0.9 percent in October, the largest decrease since falling 1.6 percent in May. Leading
the October decline, the index for processed energy goods dropped 4.3 percent. Prices for processed
foods and feeds decreased 0.4 percent. In contrast, the index for processed materials less foods and
energy advanced 0.1 percent. For the 12 months ended in October, prices for processed goods for
intermediate demand fell 4.5 percent.
Product detail: Over 70 percent of the October decline in prices for processed goods for intermediate
demand can be traced to a 12.0-percent drop in the index for diesel fuel. Prices for gasoline, prepared
animal feeds, plastic resins and materials, liquified petroleum gas, and building paper and board also
moved lower. Conversely, the index for primary basic organic chemicals increased 13.0 percent.
Prices for commercial electric power and for meats also moved higher.
Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate
demand fell 1.4 percent in October, the largest decline since dropping 5.2 percent in May. The broad-
based October decrease was led by prices for unprocessed foodstuffs and feedstuffs, which moved
down 3.1 percent. The indexes for unprocessed energy materials and for unprocessed nonfood
materials less energy also fell, 0.3 percent and 0.4 percent, respectively. For the 12 months ended in
October, prices for unprocessed goods for intermediate demand decreased 14.0 percent.
Product detail: A major factor in the October decrease in prices for unprocessed goods for
intermediate demand was the index for slaughter poultry, which fell 4.9 percent. Prices for crude
petroleum; slaughter hogs; hay, hayseeds, and oilseeds; corn; and copper base scrap also moved
lower. In contrast, the index for natural gas increased 10.9 percent. Prices for recyclable paper and
for slaughter cows and bulls also rose.
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.) |
2022 |
|
Oct. |
-0.2 |
-0.2 |
1.5 |
-0.8 |
10.1 |
-9.7 |
-0.7 |
-18.1 |
-4.1 |
9.3 |
Nov. |
-0.5 |
0.8 |
-1.9 |
-0.2 |
7.6 |
-3.1 |
0.0 |
-6.7 |
-0.7 |
3.5 |
Dec. |
-2.5 |
-0.6 |
-9.8 |
-0.4 |
4.8 |
1.5 |
-0.2 |
5.2 |
-1.7 |
10.7 |
2023 |
|
Jan. |
1.1 |
0.2 |
4.9 |
0.1 |
3.9 |
-4.7 |
-5.8 |
-7.0 |
2.1 |
2.8 |
Feb. |
-0.4 |
-2.1 |
-1.6 |
0.2 |
2.1 |
-4.9 |
-1.0 |
-10.9 |
0.3 |
-10.4 |
Mar. |
-1.0 |
-0.2 |
-3.9 |
-0.2 |
-1.0 |
-4.7 |
-0.7 |
-11.1 |
-0.9 |
-16.8 |
Apr. |
-0.5 |
-1.1 |
-2.9 |
0.2 |
-3.4 |
1.1 |
-1.5 |
3.7 |
1.8 |
-20.3 |
May |
-1.6 |
-1.8 |
-7.0 |
-0.1 |
-7.2 |
-5.2 |
-4.6 |
-8.0 |
-2.1 |
-28.2 |
June |
-0.5 |
-1.2 |
-0.5 |
-0.4 |
-9.4 |
-1.0 |
1.0 |
-2.8 |
-1.6 |
-32.1 |
July |
-0.3 |
1.1 |
-0.1 |
-0.6 |
-7.6 |
2.4 |
-0.8 |
10.1 |
-3.1 |
-24.0 |
Aug. |
2.2 |
0.8 |
11.8 |
-0.2 |
-4.4 |
2.2 |
0.1 |
5.8 |
0.0 |
-26.2 |
Sept. |
0.5 |
0.8 |
2.3 |
0.0 |
-3.8 |
3.7 |
2.3 |
7.6 |
-0.6 |
-21.3 |
Oct. |
-0.9 |
-0.4 |
-4.3 |
0.1 |
-4.5 |
-1.4 |
-3.1 |
-0.3 |
-0.4 |
-14.0 |
Services for intermediate demand: The index for services for intermediate demand was unchanged
in both October and September. In October, increases of 0.9 percent in margins for trade services for
intermediate demand and 0.7 percent in prices for transportation and warehousing services for
intermediate demand offset a 0.3-percent decrease in the index for services less trade, transportation,
and warehousing for intermediate demand. For the 12 months ended in October, prices for services
for intermediate demand advanced 3.5 percent.
Product detail: Within the index for services for intermediate demand in October, margins for
chemicals and allied products wholesaling rose 6.7 percent. The indexes for business loans (partial);
metals, minerals, and ores wholesaling; legal services; and airline passenger services also moved
higher. Conversely, prices for gross rents for retail properties fell 7.0 percent. The indexes for
securities brokerage, dealing, investment advice, and related services; portfolio management; food
wholesaling; and deep-sea water transportation of freight 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.) |
2022 |
|
Oct. |
0.4 |
0.0 |
0.6 |
0.5 |
6.7 |
Nov. |
0.8 |
0.9 |
-1.3 |
1.2 |
6.9 |
Dec. |
0.0 |
-1.3 |
0.0 |
0.4 |
6.0 |
2023 |
|
Jan. |
1.0 |
0.8 |
0.5 |
1.1 |
6.3 |
Feb. |
0.3 |
-0.7 |
0.0 |
0.7 |
6.2 |
Mar. |
-0.3 |
0.9 |
-1.0 |
-0.5 |
4.5 |
Apr. |
0.7 |
0.8 |
-1.1 |
1.0 |
4.4 |
May |
0.2 |
-0.3 |
-0.3 |
0.4 |
3.9 |
June |
0.1 |
-0.8 |
-0.1 |
0.4 |
4.4 |
July |
0.6 |
2.1 |
0.9 |
0.2 |
4.8 |
Aug. |
0.1 |
-0.2 |
-0.6 |
0.3 |
4.5 |
Sept. |
0.0 |
-0.5 |
0.5 |
0.1 |
4.0 |
Oct. |
0.0 |
0.9 |
0.7 |
-0.3 |
3.5 |
Intermediate Demand by Production Flow
Stage 4 intermediate demand: Prices for stage 4 intermediate demand decreased 0.3 percent in
October, the largest decline since falling 0.3 percent in March. In October, the index for total goods
inputs to stage 4 intermediate demand dropped 0.4 percent, and prices for total services inputs moved
down 0.3 percent. (See table D.) Decreases in the indexes for gasoline; gross rents for retail
properties; securities brokerage, dealing, investment advice, and related services; portfolio
management; diesel fuel; and food wholesaling outweighed increases in the indexes for chemicals
and allied products wholesaling, architectural and engineering services, and fabricated structural
metal. For the 12 months ended in October, prices for stage 4 intermediate demand rose 1.9 percent.
Stage 3 intermediate demand: The index for stage 3 intermediate demand declined 0.5 percent in
October, the largest decrease since falling 1.4 percent in May. In October, prices for total goods
inputs to stage 3 intermediate demand dropped 1.7 percent. In contrast, the index for total services
inputs advanced 0.5 percent. Lower prices for diesel fuel, gasoline, slaughter poultry, slaughter hogs,
steel mill products, and gross rents for retail properties outweighed increases in the indexes for cable
network advertising time sales, primary basic organic chemicals, and chemicals and allied products
wholesaling. For the 12 months ended in October, prices for stage 3 intermediate demand declined
4.1 percent, the eighth straight 12-month decrease.
Stage 2 intermediate demand: Prices for stage 2 intermediate demand edged down 0.1 percent in
October following three consecutive advances. In October, the index for total goods inputs to stage 2
intermediate demand fell 0.5 percent. Conversely, prices for total services inputs rose 0.2 percent.
Decreases in the indexes for crude petroleum, oilseeds, liquefied petroleum gas, food wholesaling,
and prepared animal feeds outweighed increases in the indexes for business loans (partial), natural
gas, primary basic organic chemicals, and chemicals and allied products wholesaling. For the 12
months ended in October, prices for stage 2 intermediate demand fell 2.7 percent.
Stage 1 intermediate demand: The index for stage 1 intermediate demand moved down 0.4 percent
in October, the largest decrease since dropping 1.0 percent in May. In October, prices for total goods
inputs to stage 1 intermediate demand fell 0.7 percent, and the index for total services inputs declined
0.2 percent. Lower prices for diesel fuel; gasoline; gross rents for retail properties; securities
brokerage, dealing, investment advice, and related services; traveler accommodation services; and
steel mill products outweighed increases in the indexes for primary basic organic chemicals,
chemicals and allied products wholesaling, and airline passenger services. For the 12 months ended
in October, prices for stage 1 intermediate demand fell 1.5 percent, the seventh consecutive 12-month
decrease.
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 |
2022 |
|
Oct. |
0.1 |
-0.1 |
0.2 |
-0.1 |
-0.6 |
0.5 |
-4.7 |
-9.8 |
0.8 |
0.1 |
-0.2 |
0.4 |
Nov. |
0.4 |
-0.2 |
1.0 |
-0.4 |
-1.1 |
0.3 |
-1.0 |
-2.9 |
0.8 |
0.1 |
-0.6 |
0.9 |
Dec. |
-0.4 |
-0.7 |
0.0 |
-2.0 |
-3.8 |
0.0 |
1.0 |
1.5 |
0.6 |
-1.8 |
-3.0 |
-0.4 |
2023 |
|
Jan. |
1.0 |
0.8 |
1.2 |
0.2 |
-0.5 |
0.9 |
-0.9 |
-2.9 |
0.9 |
0.7 |
0.8 |
0.7 |
Feb. |
0.0 |
-0.1 |
0.2 |
-0.2 |
-0.6 |
0.1 |
-1.4 |
-4.6 |
1.2 |
-0.3 |
-0.4 |
-0.2 |
Mar. |
-0.3 |
-0.5 |
-0.1 |
-0.7 |
-1.1 |
-0.4 |
-2.5 |
-4.9 |
-0.7 |
-0.4 |
-1.0 |
0.2 |
Apr. |
0.3 |
-0.2 |
0.7 |
-0.2 |
-1.2 |
0.7 |
0.9 |
1.2 |
0.7 |
-0.1 |
-0.7 |
0.5 |
May |
-0.2 |
-0.6 |
0.2 |
-1.4 |
-3.0 |
-0.1 |
-1.4 |
-4.1 |
0.6 |
-1.0 |
-1.8 |
-0.2 |
June |
0.0 |
0.0 |
0.1 |
-0.1 |
-0.1 |
-0.2 |
-1.0 |
-2.2 |
-0.2 |
-0.1 |
-0.6 |
0.3 |
July |
0.4 |
-0.1 |
0.9 |
-0.4 |
-1.4 |
0.5 |
1.9 |
4.0 |
0.4 |
0.1 |
-0.7 |
0.9 |
Aug. |
0.6 |
0.7 |
0.5 |
1.2 |
3.3 |
-0.5 |
0.8 |
2.2 |
-0.3 |
1.4 |
2.6 |
0.4 |
Sept. |
0.2 |
0.3 |
0.2 |
0.5 |
1.2 |
0.0 |
1.2 |
3.4 |
-0.4 |
0.3 |
0.3 |
0.3 |
Oct. |
-0.3 |
-0.4 |
-0.3 |
-0.5 |
-1.7 |
0.5 |
-0.1 |
-0.5 |
0.2 |
-0.4 |
-0.7 |
-0.2 |
________________
The Producer Price Index for November 2023 is scheduled to be released on Wednesday, December 13, 2023,
at 8:30 a.m. (ET).
*****
Resampling of Industries - October 2023
Effective with the release of data for October 2023, the Producer Price Index (PPI) includes data
for 6 resampled industries classified according to the 2022 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 October 2023, see the
current issue of the PPI Detailed Report online at www.bls.gov/ppi/detailed-report/ppi-detailed-
report-october-2023.pdf, or contact the PPI Section of Index Analysis and Public Information at
ppi-info@bls.gov or (202) 691-7705.
NAICS
Code Industry
311511 Fluid milk manufacturing
311812 Commercial bakeries
327213 Glass container manufacturing
331315 Aluminum sheet, plate, and foil manufacturing
331511 Iron foundries
333519 Rolling mill and other metalworking machinery manufacturing
*****
Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be
Available on February 14, 2024
Each year with the release of PPI data for January, seasonal adjustment factors and relative
importance figures are recalculated to reflect price movements from the just-completed calendar
year. The following information relating to the seasonal-factor update will be available on
February 14, 2024 (2 workdays prior to the release of PPI data for January 2024 on February 16,
2024):
* Direct seasonal factors for PPI commodity indexes for the year 2024,
* Recalculated seasonal factors for the last 5 years (2019-2023) for PPI commodity indexes,
* Recalculated seasonal factors for the last 5 years (2019-2023) for PPI Final Demand-
Intermediate Demand indexes,
* Recalculated seasonal index data for the last 5 years (2019-2023) for Final Demand-
Intermediate Demand and commodity indexes. This revision to seasonally adjusted indexes
for the previous 5 years will be posted to the PPI database on the BLS website.
In addition, the following relative importance figure tables, which include values for December
2023, will be available on February 14, 2024:
* Final demand by individual commodities
* Final demand by component series
* Individual commodities of intermediate demand by commodity type
* Component series of intermediate demand by commodity type
* Individual commodities of intermediate demand by production flow
* Component series of intermediate demand by production flow
* Commodities, all levels
* Wherever-provided services and construction
This information will be 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.
United States Department of Labor
