Producer Price Index News Release summary

Transmission of material in this release is embargoed until USDL 23-1974
8:30 a.m. (ET) Thursday, September 14, 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 - AUGUST 2023

The Producer Price Index for final demand increased 0.7 percent in August, seasonally adjusted,
after rising 0.4 percent in July, the U.S. Bureau of Labor Statistics reported today. (See table A.)
The August advance is the largest increase in final demand prices since moving up 0.9 percent in
June 2022. On an unadjusted basis, the index for final demand rose 1.6 percent for the 12 months
ended in August.

In August, 80 percent of the rise in final demand prices is attributable to a 2.0-percent jump in
the index for final demand goods. Prices for final demand services advanced 0.2 percent.

The index for final demand less foods, energy, and trade services increased 0.3 percent in
August, the same as in July. For the 12 months ended in August, prices for final demand less
foods, energy, and trade services rose 3.0 percent, the largest advance since moving up 3.4
percent for the 12 months ended in April.

Final Demand

Final demand goods: The index for final demand goods jumped 2.0 percent in August, the largest
advance since increasing 2.1 percent in June 2022. The August rise is mostly attributable to prices for
final demand energy, which surged 10.5 percent. The index for final demand goods less foods and
energy edged up 0.1 percent. In contrast, prices for final demand foods declined 0.5 percent.

Product detail: Over 60 percent of the August rise in the index for final demand goods can be traced
to prices for gasoline, which jumped 20.0 percent. The indexes for diesel fuel, jet fuel, home heating
oil, beverages and beverage materials, and iron and steel scrap also moved higher. Conversely, prices
for fresh and dry vegetables fell 11.5 percent. The indexes for residential electric power and for
industrial chemicals also decreased. (See table 2.)

Final demand services: The index for final demand services rose 0.2 percent in August after
increasing 0.5 percent in July. Leading the advance in August, prices for final demand services less
trade, transportation, and warehousing moved up 0.3 percent. The index for final demand
transportation and warehousing services jumped 1.4 percent. In contrast, margins for final demand
trade services declined 0.3 percent. (Trade indexes measure changes in margins received by
wholesalers and retailers.)

Product detail: A 1.1-percent increase in the index for residential real estate services (partial) was a
major factor in the August rise in prices for final demand services. The indexes for truck
transportation of freight; machinery, equipment, parts, and supplies wholesaling; automotive fuels
and lubricants retailing; services related to securities brokerage and dealing (partial); and residential
real estate loans (partial) also moved higher. Conversely, margins for chemicals and allied products
wholesaling fell 4.7 percent. The indexes for food wholesaling and for deposit services (partial) also
decreased.

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.)
Month	Total final demand	Final demand less foods, energy, and trade	Total	Foods	Energy	Less foods and energy	Total	Trade	Transportation and warehousing	Other	Change in final demand from 12 months ago (unadj.)
2022
Aug.	0.0	0.2	-0.8	-0.2	-4.4	0.2	0.5	1.0	-1.1	0.4	8.7	5.6
Sept.	0.3	0.3	0.5	1.5	1.0	0.0	0.2	-0.3	-0.2	0.5	8.5	5.6
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.(1)	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(1)	-0.3	0.0	-1.5	-1.0	-6.9	0.1	0.2	0.7	-0.5	0.0	1.1	2.9
June(1)	-0.1	0.2	0.0	-0.2	0.7	-0.2	-0.1	-1.1	0.0	0.3	0.1	2.8
July(1)	0.4	0.3	0.3	0.4	0.8	0.0	0.5	0.5	0.2	0.6	0.8	2.9
Aug.	0.7	0.3	2.0	-0.5	10.5	0.1	0.2	-0.3	1.4	0.3	1.6	3.0
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2023 through July 2023 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 2.1 percent, the index
for unprocessed goods rose 1.3 percent, and prices for services edged up 0.1 percent. (See tables B
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate
demand increased 2.1 percent in August, the largest advance since moving up 2.2 percent in May
2022. Leading the August rise, prices for processed energy goods jumped 12.1 percent. The index for
processed foods and feeds increased 0.7 percent. In contrast, prices for processed materials less foods
and energy declined 0.3 percent. For the 12 months ended in August, the index for processed goods
for intermediate demand fell 4.3 percent.

Product detail: Over 70 percent of the August rise in prices for processed goods for intermediate
demand can be traced to a 41.1-percent jump in the index for diesel fuel. Prices for gasoline; jet fuel;
natural, processed, and imitation cheese; fats and oils; and for particleboard and fiberboard also
advanced. Conversely, the index for industrial chemicals decreased 1.2 percent. Prices for
thermoplastic resins and materials and for beef and veal also declined.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate
demand moved up 1.3 percent in August after rising 2.4 percent in July. Leading the August increase,
prices for unprocessed energy materials advanced 5.4 percent. The index for unprocessed nonfood
materials less energy rose 0.8 percent. In contrast, prices for unprocessed foodstuffs and feedstuffs
fell 2.3 percent. For the 12 months ended in August, the index for unprocessed goods for intermediate
demand dropped 26.9 percent.

Product detail: A major factor in the advance in prices for unprocessed goods for intermediate
demand was the index for crude petroleum, which rose 8.9 percent. Prices for iron and steel scrap,
slaughter steers and heifers, slaughter chickens, slaughter sows, and raw cotton also increased.
Conversely, the index for hay, hayseeds, and oilseeds fell 6.3 percent. Prices for natural gas and for
corn 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
Month	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
Aug.	-1.2	-0.2	-3.7	-0.6	14.3	4.8	-0.9	10.9	0.5	36.9
Sept.	-0.1	-0.1	2.0	-0.8	12.9	-3.1	1.3	-6.6	-0.6	29.2
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.(1)	-0.5	-1.1	-2.9	0.2	-3.4	1.1	-1.5	3.7	1.8	-20.3
May(1)	-1.5	-1.9	-7.0	0.0	-7.1	-5.3	-4.6	-8.0	-2.4	-28.3
June(1)	-0.5	-1.1	-0.6	-0.4	-9.3	-1.0	1.0	-2.7	-1.9	-32.2
July(1)	-0.3	1.3	-0.3	-0.6	-7.6	2.4	-0.8	9.9	-2.9	-24.1
Aug.	2.1	0.7	12.1	-0.3	-4.3	1.3	-2.3	5.4	0.8	-26.9
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2023 through July 2023 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 edged up 
0.1 percent in August after rising 0.5 percent in July. The August advance is attributable to a 0.3-
percent increase in prices for services less trade, transportation, and warehousing for 
intermediate demand. In contrast, the indexes for trade services for intermediate demand and for 
transportation and warehousing services for intermediate demand declined 0.3 percent and 0.2 
percent, respectively. For the 12 months ended in August, prices for services for intermediate 
demand moved up 4.2 percent.

Product detail: Leading the August increase in the index for services for intermediate demand, 
prices for nonresidential real estate services advanced 2.9 percent. The indexes for transportation 
of freight and mail; services related to securities brokerage and dealing (partial); machinery and 
equipment parts and supplies wholesaling; and hardware, building materials, and supplies 
retailing also rose. Conversely, margins for chemicals and allied products wholesaling fell 4.7 
percent. The indexes for arrangement of freight and cargo transportation, television advertising 
time sales, and business loans (partial) 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
Month	Total	Trade	Transportation and warehousing	Other	Total, change from 12 months ago (unadj.)
2022
Aug.	0.6	-0.9	-0.3	1.3	6.0
Sept.	0.5	0.1	-0.4	0.8	6.2
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.(1)	0.7	0.8	-1.1	1.0	4.4
May(1)	0.1	-0.4	-0.4	0.4	3.9
June(1)	0.0	-0.8	0.0	0.2	4.2
July(1)	0.5	1.4	0.6	0.2	4.5
Aug.	0.1	-0.3	-0.2	0.3	4.2
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2023 through July 2023 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 rose 0.6 percent in
August, the largest advance since moving up 1.0 percent in January. In August, the index for total
goods inputs to stage 4 intermediate demand increased 0.6 percent, and prices for total services
inputs climbed 0.5 percent. (See table D.) Advances in the indexes for diesel fuel, nonresidential
real estate services, gasoline, machinery and equipment parts and supplies wholesaling, services
related to securities brokerage and dealing (partial), and transportation of freight and mail
outweighed declines in the indexes for chemicals and allied products wholesaling; business loans
(partial); and hay, hayseeds, and oilseeds. For the 12 months ended in August, prices for stage 4
intermediate demand increased 2.3 percent, the largest 12-month rise since moving up 2.7
percent in April.

Stage 3 intermediate demand: The index for stage 3 intermediate demand increased 0.9 percent
in August, the largest advance since rising 1.7 percent in May 2022. In August, prices for total
goods inputs to stage 3 intermediate demand jumped 2.5 percent. Conversely, the index for total
services inputs fell 0.5 percent. Advancing prices for diesel fuel, jet fuel, gasoline, transportation
of freight and mail, nonresidential real estate services, and slaughter steers and heifers
outweighed decreases in the indexes for television advertising time sales, arrangement of freight
and cargo transportation, and raw milk. For the 12 months ended in August, prices for stage 3
intermediate demand moved down 4.5 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand rose 0.7 percent in
August after advancing 1.7 percent in July. In August, prices for total goods inputs to stage 2
intermediate demand increased 2.2 percent. In contrast, the index for total services inputs fell 0.4
percent. Advances in the indexes for crude petroleum, iron and steel scrap, diesel fuel, liquefied
petroleum gas, automotive fuels and lubricants retailing, and machinery and equipment parts and
supplies wholesaling outweighed decreasing prices for arrangement of freight and cargo
transportation, natural gas, and business loans (partial). For the 12 months ended in August, the
index for stage 2 intermediate demand dropped 10.1 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand increased 1.6 percent
in August, the largest advance since moving up 1.6 percent in April 2022. In August, prices for
total goods inputs to stage 1 intermediate demand rose 2.5 percent, and prices for total services
inputs climbed 0.6 percent. Increases in the indexes for diesel fuel; nonresidential real estate
services; gasoline; services related to securities brokerage and dealing (partial); transportation of
freight and mail; and hardware, building materials, and supplies retailing outweighed decreases
in the indexes for chemicals and allied products wholesaling; metals, minerals, and ores
wholesaling; and industrial chemicals. For the 12 months ended in August, prices for stage 1
intermediate demand declined 1.0 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
Month	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs
2022
Aug.	0.3	0.0	0.6	-1.3	-2.6	0.1	3.0	4.8	1.2	-0.4	-1.2	0.5
Sept.	0.4	0.1	0.7	0.0	-0.1	0.1	-1.9	-4.0	0.3	0.3	0.3	0.2
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.(1)	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(1)	-0.2	-0.5	0.2	-1.4	-2.9	-0.1	-1.4	-4.0	0.6	-1.0	-1.7	-0.2
June(1)	-0.1	0.0	-0.1	-0.2	-0.2	-0.2	-1.0	-2.2	-0.2	-0.2	-0.7	0.2
July(1)	0.4	-0.1	0.8	-0.5	-1.5	0.3	1.7	4.0	0.1	0.1	-0.8	0.8
Aug.	0.6	0.6	0.5	0.9	2.5	-0.5	0.7	2.2	-0.4	1.6	2.5	0.6
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for April 2023 through July 2023 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for September 2023 is scheduled to be released on Wednesday, October 11, 2023, 
at 8:30 a.m. (ET).

Technical notes

Table 1. Producer price index percent changes and weights for Final Demand - Intermediate Demand groupings, seasonally adjusted

Table 2. Producer price index percent changes for selected commodity groupings by Final Demand - Intermediate Demand category, seasonally adjusted

Table 3. Producer price indexes Final Demand - Intermediate Demand groupings, seasonally adjusted

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Last Modified Date: September 14, 2023