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Final demand Producer Price Index up 1.1 percent for the 12 months ended in October 2019

November 21, 2019

Final demand producer prices increased 1.1 percent over the 12 months ended October 2019; this was the smallest increase since a 1.1-percent increase in the 12 months ended October 2016.

Producer Price Indexes for final demand, percent change, October 2018–October 2019
Grouping 12-month percent change Relative importance, Dec 2018

Final demand total

1.1% 100.000%

Final demand goods

-0.6 32.799

Foods

2.9 5.744

Energy

-8.6 5.279

Goods less food and energy

0.6 21.776

Final demand services

2.0 65.510

Trade

2.2 20.411

Transportation and warehousing

0.5 4.666

Services less trade, transportation, and warehousing

1.9 40.433

Final demand construction

3.9 1.688

Note: These data are not seasonally adjusted. Producer price indexes are subject to revision 4 months after original publication.

Producer prices for final demand goods decreased 0.6 percent over this 12-month period. The relative importance value for final demand goods, which shows how buyers distribute expenditures among the groupings that make up the total, was 32.8 percent; thus final demand goods accounted for about a third of total final demand purchases.

Producer prices for final demand services, which had a relative importance of 65.5 percent, increased 2.0 percent. Producer prices for construction (relative importance 1.7) increased 3.9 percent from October 2018 to October 2019.

Within final demand goods, food prices increased 2.9 percent, while energy prices decreased 8.6 percent over the 12 months ended in October. Prices for final demand goods less food and energy edged up 0.6 percent over the year.

Producer prices for trade services increased 2.2 percent over the year, while transportation and warehousing services prices increased 0.5 percent. Prices for services less trade, transportation, and warehousing increased 1.9 percent.

These data are from the Producer Price Indexes program. To learn more, see "Producer Price Indexes — October 2019." These data are not seasonally adjusted. Also see charts related to the latest "Producer Price Indexes" news release. All producer price indexes are subject to revision once, 4 months after initial publication. Producer price indexes measure the average change over time in the selling prices received by domestic producers for their output. The relative importance of a component of the Producer Price Index represents its value weight that is allocated to the final demand category, expressed as a percentage of the total weight of the category.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Final demand Producer Price Index up 1.1 percent for the 12 months ended in October 2019 on the Internet at https://www.bls.gov/opub/ted/2019/final-demand-producer-price-index-up-1-point-1-percent-for-the-12-months-ended-in-october-2019.htm (visited September 19, 2020).

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