Blog Post

Producer Price Index for Final Demand Advanced 0.1 Percent in November

The Producer Price Index for final demand advanced 0.1% in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.3% in October and 0.4% in September. (See table A.) On an unadjusted basis, the final demand index increased 0.8% for the 12 months ended in November, the largest advance since moving up 1.1% for the 12 months ended in February.

In November, the rise in the final demand index can be traced to a 0.4% increase in prices for final demand goods. The index for final demand services was unchanged.

The index for final demand less foods, energy, and trade services advanced 0.1% in November, the seventh consecutive increase. For the 12 months ended in November, prices for final demand less foods, energy, and trade services moved up 0.9%, the largest rise since a 1.0% increase for the 12 months ended in March.

Final Demand

Final Demand Goods: The index for final demand goods rose 0.4% in November, the seventh consecutive advance. Nearly half of the broad-based November increase can be traced to prices for final demand energy, which moved up 1.2%. The indexes for final demand goods less foods and energy and for final demand foods rose 0.2% and 0.5%, respectively.

Product Detail: In November, a major factor in the increase in prices for final demand goods was the index for diesel fuel, which advanced 8.4%. Prices for meats, processed young chickens, residential electric power, residential natural gas, and tobacco products also moved higher. In contrast, the gasoline index fell 1.9%. Prices for fresh fruits and melons and for pharmaceutical preparations also decreased.

Final Demand Services: The index for final demand services was unchanged in November after advancing 0.2% in October. In November, prices for final demand services less trade, transportation, and warehousing climbed 0.2%. Conversely, the indexes for final demand trade services and for final demand transportation and warehousing services decreased 0.3% and 0.9%, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product Detail: In November, prices for outpatient care (partial) increased 0.4%. The indexes for apparel, jewelry, footwear, and accessories retailing; machinery and equipment parts and supplies wholesaling; truck transportation of freight; and chemicals and allied products wholesaling also moved higher. In contrast, margins for machinery and vehicle wholesaling fell 7.6%. The indexes for transportation of passengers (partial); fuels and lubricants retailing; hardware, building materials, and supplies retailing; and securities brokerage, dealing, and investment advice 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.)
Total Foods Energy Less
foods
and
energy
Total Trade Transportation
and
warehousing
Other

2019

Nov.

-0.1 0.1 0.3 1.3 -0.1 0.1 -0.3 -1.2 -0.2 0.1 1.0 1.4

Dec.

0.3 0.2 0.2 -0.2 1.1 0.0 0.3 0.6 1.6 0.1 1.4 1.5

2020

Jan.

0.3 0.3 0.3 0.2 0.4 0.3 0.3 0.3 -1.3 0.5 2.0 1.5

Feb.

-0.5 -0.1 -0.9 -1.8 -3.9 0.1 -0.3 -0.7 -0.2 -0.3 1.1 1.4

Mar.

-0.4 -0.2 -1.5 -0.1 -9.1 0.0 0.1 0.9 -2.9 0.1 0.3 1.0

Apr.

-1.3 -0.8 -3.0 -0.5 -18.2 -0.3 -0.4 0.9 -3.4 -0.8 -1.5 -0.1

May

0.5 0.2 1.5 5.6 4.3 -0.1 0.1 -0.2 1.4 0.1 -1.1 -0.2

June

0.3 0.2 0.4 -4.9 9.6 0.1 0.2 -0.1 1.2 0.3 -0.7 0.1

July(1)

0.6 0.4 0.7 -0.8 4.6 0.3 0.5 0.9 -0.7 0.4 -0.3 0.3

Aug.(1)

0.2 0.1 0.3 0.0 0.7 0.3 0.2 0.5 -0.7 0.2 -0.2 0.3

Sept.

0.4 0.4 0.4 1.2 -0.3 0.4 0.4 0.2 0.4 0.5 0.4 0.7

Oct.

0.3 0.2 0.5 2.4 0.8 0.0 0.2 0.2 1.1 0.1 0.5 0.8

Nov.

0.1 0.1 0.4 0.5 1.2 0.2 0.0 -0.3 -0.9 0.2 0.8 0.9

Footnotes
(1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for July 2020 have been revised to reflect the availability of late reports and corrections by respondents.

 

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