The Producer Price Index for final demand increased 0.2% 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% for the 12 months ended in September.
In September, the rise in the final demand index can be traced to a 0.3% increase in prices for final demand services. In contrast, the index for final demand goods decreased 0.1%.
The index for final demand less foods, energy, and trade services moved up 0.4% 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%.
Final Demand
Final Demand Services: The index for final demand services increased 0.3% in September following two consecutive declines of 0.1%. The broad-based advance was led by a 1.8% jump in the index for final demand transportation and warehousing services. Prices for final demand services less trade, transportation, and warehousing rose 0.3%, and the index for final demand trade services inched up 0.1%. (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%. 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. The indexes for automotive fuels and lubricants retailing and for traveler accommodation services declined.
Final Demand Goods: The index for final demand goods edged down 0.1% in September, the first decrease since a 0.5% drop in May 2017. Leading the September decline, prices for final demand energy fell 0.8%. The index for final demand foods decreased 0.6%. In contrast, prices for final demand goods less foods and energy rose 0.2%.
Product Detail: Leading the September decline in the index for final demand goods, gasoline prices fell 3.5%. The indexes for electric power; iron and steel scrap also moved down.
| 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 |
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Intermediate Demand by Commodity Type
Within intermediate demand in September, prices for processed goods were unchanged, the index for unprocessed goods increased 1.7%, and prices for services moved up 0.5%.
Product Detail: In September, prices for primary basic organic chemicals rose 1.9%. 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%. The indexes for gasoline, electric power, residual fuels, and ethanol also fell.
