Fra bls.gov:
The Producer Price Index for final demand declined 0.5 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.2 percent in November and 0.4 percent in October. (See table A.) On an unadjusted basis, the index for final demand increased 6.2 percent in 2022 after rising 10.0 percent in 2021. In December, the decrease in the final demand index can be attributed to a 1.6-percent decline in prices for final demand goods. In contrast, the index for final demand services rose 0.1 percent. Prices for final demand less foods, energy, and trade services edged up 0.1 percent in December after increasing 0.3 percent in November. The index for final demand less foods, energy, and trade services advanced 4.6 percent in 2022 following a 7.0-percent rise in 2021. Final Demand Final demand goods: Prices for final demand goods moved down 1.6 percent in December, the largest decrease since falling 1.8 percent in July. Leading the December decline, the index for final demand energy dropped 7.9 percent. Prices for final demand foods decreased 1.2 percent. Conversely, the index for final demand goods less foods and energy advanced 0.2 percent. Product detail: Nearly half of the December decrease in the index for final demand goods can be traced to a 13.4-percent decline in prices for gasoline. The indexes for diesel fuel; jet fuel; fresh and dry vegetables; canned, cooked, smoked, or prepared poultry; and basic organic chemicals also fell. In contrast, prices for carbon steel scrap increased 8.3 percent. The indexes for chicken eggs and for electric power also moved higher. (See table 2.) Final demand services: Prices for final demand services edged up 0.1 percent in December after rising 0.2 percent in November. The December increase can be traced to margins for final demand trade services, which advanced 0.3 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Conversely, the index for final demand transportation and warehousing services fell 0.2 percent, while prices for final demand services less trade, transportation, and warehousing were unchanged. Product detail: A major factor in the December increase in prices for final demand services was a 17.6-percent jump in margins for fuels and lubricants retailing. The indexes for deposit services (partial), airline passenger services, inpatient care, and professional and commercial equipment wholesaling also moved higher. In contrast, prices for truck transportation of freight decreased 1.7 percent. The indexes for residential real estate loans (partial), machinery and vehicle wholesaling, and guestroom rental also fell.
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 | |||||
2021 | ||||||||||||
Dec. | 0.6 | 0.4 | -0.1 | -0.2 | -1.4 | 0.4 | 0.9 | 1.9 | 1.6 | 0.3 | 10.0 | 7.0 |
2022 | ||||||||||||
Jan. | 1.2 | 0.8 | 1.6 | 1.8 | 4.1 | 0.8 | 0.9 | 1.3 | 0.0 | 0.8 | 10.1 | 6.9 |
Feb. | 1.1 | 0.2 | 2.2 | 1.9 | 7.2 | 0.8 | 0.5 | 1.7 | 2.0 | -0.3 | 10.4 | 6.7 |
Mar. | 1.7 | 1.0 | 2.4 | 2.4 | 6.6 | 1.1 | 1.3 | 2.3 | 5.6 | 0.4 | 11.7 | 7.1 |
Apr. | 0.5 | 0.4 | 1.3 | 1.5 | 1.5 | 1.1 | 0.0 | 0.1 | 2.1 | -0.2 | 11.2 | 6.8 |
May | 0.8 | 0.5 | 1.5 | 0.4 | 4.8 | 0.7 | 0.4 | 0.6 | 2.5 | 0.1 | 11.1 | 6.8 |
June | 0.9 | 0.3 | 2.2 | -0.1 | 8.9 | 0.5 | 0.3 | 0.3 | 0.8 | 0.2 | 11.2 | 6.4 |
July | -0.4 | 0.2 | -1.8 | 1.2 | -9.1 | 0.1 | 0.2 | 0.7 | -0.5 | 0.0 | 9.7 | 5.8 |
Aug.(1) | -0.1 | 0.2 | -1.0 | -0.1 | -5.4 | 0.2 | 0.5 | 1.0 | -1.1 | 0.4 | 8.7 | 5.6 |
Sept.(1) | 0.3 | 0.3 | 0.3 | 1.5 | 0.3 | 0.0 | 0.3 | -0.2 | -0.3 | 0.6 | 8.5 | 5.7 |
Oct.(1) | 0.4 | 0.2 | 0.6 | 0.7 | 2.5 | 0.0 | 0.2 | 0.1 | 0.4 | 0.2 | 8.2 | 5.5 |
Nov.(1) | 0.2 | 0.3 | 0.1 | 3.3 | -3.2 | 0.3 | 0.2 | 0.0 | -0.9 | 0.4 | 7.3 | 4.9 |
Dec. | -0.5 | 0.1 | -1.6 | -1.2 | -7.9 | 0.2 | 0.1 | 0.3 | -0.2 | 0.0 | 6.2 | 4.6 |
Footnotes |
Intermediate Demand by Commodity Type Within intermediate demand in December, prices for processed goods decreased 2.8 percent, the index for unprocessed goods rose 3.4 percent, and prices for services increased 0.4 percent. (See tables B and C.) Processed goods for intermediate demand: The index for processed goods for intermediate demand moved down 2.8 percent in December, the largest decline since falling 3.4 percent in April 2020. Over 80 percent of the broad-based decrease in December is attributable to prices for processed energy goods, which dropped 10.9 percent. The indexes for processed materials less foods and energy and for processed foods and feeds also moved down, 0.5 percent and 0.8 percent, respectively. In 2022, prices for processed goods for intermediate demand increased 4.7 percent after jumping 24.4 percent in 2021. Product detail: Nearly two-thirds of the December decline in the index for processed goods for intermediate demand can be traced to a 27.0-percent drop in prices for diesel fuel. The indexes for gasoline; basic organic chemicals; jet fuel; asphalt; and canned, cooked, smoked, or prepared poultry also moved lower. Conversely, prices for electric power advanced 1.0 percent. The indexes for beef and veal and for primary nonferrous metals also increased. Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate demand rose 3.4 percent in December following three consecutive declines. Leading the increase, the index for unprocessed energy materials advanced 9.5 percent. Prices for unprocessed nonfood materials less energy moved up 0.6 percent. In contrast, the index for unprocessed foodstuffs and feedstuffs fell 1.5 percent. In 2022, prices for unprocessed goods for intermediate demand moved up 11.7 percent following a 40.0-percent jump in 2021. Product detail: A major factor in the increase in prices for unprocessed goods for intermediate demand was the index for natural gas, which surged 45.3 percent. Prices for ungraded chicken eggs, carbon steel scrap, hay and hayseeds, slaughter turkeys, and aluminum base scrap also moved up. Conversely, the index for grains declined 5.9 percent. Prices for crude petroleum and for raw cotton also decreased.
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.) | |
2021 | ||||||||||
Dec. | -0.1 | 0.1 | -2.7 | 0.6 | 24.4 | -4.8 | 3.8 | -12.1 | -1.8 | 40.0 |
2022 | ||||||||||
Jan. | 2.2 | 2.6 | 4.7 | 1.5 | 24.8 | 3.1 | 2.9 | 4.2 | 1.1 | 36.4 |
Feb. | 1.5 | 2.1 | 5.8 | 0.4 | 23.3 | 9.8 | 5.4 | 18.2 | 1.5 | 33.5 |
Mar. | 2.3 | 2.1 | 7.3 | 0.9 | 22.1 | 2.9 | 7.7 | -4.3 | 9.7 | 43.3 |
Apr. | 2.0 | 3.2 | 4.4 | 1.2 | 22.0 | 5.5 | 4.2 | 9.3 | 1.3 | 50.1 |
May | 2.3 | 1.1 | 4.5 | 1.8 | 21.6 | 5.4 | 0.2 | 14.6 | -4.2 | 46.4 |
June | 2.0 | 0.0 | 8.8 | 0.1 | 21.9 | 4.8 | -0.4 | 11.1 | -2.0 | 50.3 |
July | -2.3 | 0.3 | -8.8 | -0.4 | 17.2 | -9.3 | -1.9 | -14.3 | -7.2 | 32.5 |
Aug.(1) | -1.4 | -0.1 | -4.4 | -0.6 | 14.3 | 4.6 | -1.6 | 10.9 | 0.4 | 36.9 |
Sept.(1) | -0.1 | -0.2 | 2.0 | -0.8 | 12.9 | -3.0 | 1.1 | -6.6 | 0.0 | 29.1 |
Oct.(1) | -0.1 | -0.1 | 1.9 | -0.7 | 10.2 | -10.2 | -1.5 | -18.3 | -5.1 | 9.1 |
Nov.(1) | -0.8 | 0.7 | -3.2 | -0.2 | 7.7 | -3.7 | -0.1 | -8.0 | -0.9 | 2.8 |
Dec. | -2.8 | -0.8 | -10.9 | -0.5 | 4.7 | 3.4 | -1.5 | 9.5 | 0.6 | 11.7 |
Footnotes |
Services for intermediate demand: The index for services for intermediate demand rose 0.4 percent in December, the sixth consecutive increase. Over 70 percent of the December advance can be attributed to prices for services less trade, transportation, and warehousing for intermediate demand, which moved up 0.5 percent. The index for trade services for intermediate demand increased 0.6 percent. In contrast, prices for transportation and warehousing services for intermediate demand fell 0.1 percent. In 2022, the index for services for intermediate demand rose 6.4 percent following an 8.3-percent advance in 2021. Product detail: Over 40 percent of the December rise in the index for services for intermediate demand can be traced to a 16.4-percent increase in prices for deposit services (partial). The indexes for fuels and lubricants retailing, business loans (partial), gross rents for retail properties, paper and plastics products wholesaling, and airline passenger services also advanced. Conversely, prices for truck transportation of freight fell 1.7 percent. The indexes for investment banking and for chemicals and allied products wholesaling also decreased.
Month | Services for intermediate demand | ||||
---|---|---|---|---|---|
Total | Trade | Transportation and warehousing | Other | Total, change from 12 months ago (unadj.) | |
2021 | |||||
Dec. | 0.8 | 1.5 | 1.6 | 0.5 | 8.3 |
2022 | |||||
Jan. | 0.8 | 1.4 | 0.6 | 0.6 | 7.9 |
Feb. | 0.2 | 1.4 | 0.4 | -0.2 | 7.8 |
Mar. | 1.3 | 4.4 | 2.1 | 0.0 | 8.4 |
Apr. | 0.9 | 1.0 | 1.7 | 0.6 | 8.0 |
May | 0.5 | 0.6 | 0.6 | 0.4 | 7.9 |
June | -0.3 | -0.7 | 0.1 | -0.3 | 6.3 |
July | 0.3 | 0.0 | 1.0 | 0.2 | 5.9 |
Aug.(1) | 0.6 | -1.1 | -0.4 | 1.4 | 6.0 |
Sept.(1) | 0.4 | -0.1 | -0.7 | 0.9 | 6.1 |
Oct.(1) | 0.4 | 0.1 | 0.7 | 0.5 | 6.6 |
Nov.(1) | 0.8 | 1.3 | -1.3 | 1.1 | 6.9 |
Dec. | 0.4 | 0.6 | -0.1 | 0.5 | 6.4 |
Footnotes |