February 1995 Producer Price Index

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The Producer Price Index for Finished Goods increased 0.3 percent in February, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This was the same as the January rise, which followed a 0.4 percent advance in December. Prices received by domestic producers of intermediate goods moved up 0.9 percent in February, after increasing 1.0 percent in the previous month. The Crude Goods Price Index moved up 1.5 percent after increasing 1.0 percent in December. (See table A.)

Among finished goods, prices for consumer foods turned up 0.3 percent after falling 0.6 percent in January. Price increases for energy goods slowed from 2.3 percent in January to 0.4 percent in February. The index for finished goods other than foods and energy increased 0.3 percent after moving up 0.2 percent in the previous month.

1995 Jan. 0.3 -0.6 2.3 0.2 1.6 1.0 1.0 Feb. 0.3 0.3 0.4 0.3 1.7 0.9 1.5 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1994 have been revised to reflect the availability of late reports and corrections by respondents.

Before seasonal adjustment, the Producer Price Index for Finished Goods moved up 0.3 percent in February to 126.9 (1982 =100). From February 1994 to February 1995, the Finished Goods Price Index rose 1.7 percent. During this same period, consumer food prices increased 1.3 percent, the index for finished energy goods advanced 2.3 percent, and prices for finished goods other than foods and energy were up 1.7 percent. Prices received by domestic producers of intermediate goods increased 5.7 percent during the 12 months ended in February 1995, and crude material prices advanced 0.9 percent over the same period.

Finished goods

Prices for finished consumer foods increased 0.3 percent in February, seasonally adjusted, following a 0.6 percent decline in January. Prices turned up after falling in the previous month for dairy products, eggs for fresh use, roasted coffee, processed turkeys, and milled rice. Prices for fresh and dried vegetables fell much less in February (6.0 percent) than in January (26.6 percent). Price increases accelerated for confectionery end products, finfish and shellfish, pasta, and for processed fruits and vegetables. By contrast, pork prices rose 0.8 percent in February, following a 5.8 percent advance in the previous month. Price increases also slowed for beef and veal, soft drinks, and processed young chickens. The index for shortening and cooking oils turned down 2.4 percent, the same amount that it increased in January. Prices for fresh fruits and melons fell more in February than in January.

1995 Jan. 0.7 1.0 1.0 5.2 -0.1 -0.1 3.0 -2.2 Feb. -0.2 0.8 1.0 5.7 1.2 1.7 1.4 0.9 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1994 have been revised to reflect the availability of late reports and corrections by respondents.

The Producer Price Index for finished energy goods moved up 0.4 percent in February, following a 2.3 percent rise in the previous month. Price increases for gasoline slowed from 7.9 percent in January to 0.8 percent in February. Prices for residential electric power and residential natural gas turned down after increasing a month earlier. By contrast, prices for home heating oil turned up 6.5 percent after declining 5.2 percent in January.

The index for consumer goods other than foods and energy moved up 0.3 percent in February, after inching up 0.1 percent in January. Prices turned up after falling a month earlier for prescription drugs, over-the- counter drugs, alcoholic beverages, and apparel. Price increases accelerated for sanitary papers, leather footwear, mobile homes, floor coverings, and household glassware. Prices for tobacco products, costume jewelry, and household flatware increased somewhat after showing no change a month earlier. Prices for periodicals fell much less in February than in January. By contrast, prices turned down after rising a month earlier for cosmetics, passenger cars, books, light trucks, and gold jewelry. Price increases slowed for textile house furnishings and sporting goods.

In February, the capital equipment index rose 0.3 percent, the same as in January. Increases were registered for ships, heavy motor trucks, railroad equipment, and mining machinery. By contrast, prices declined for electronic computers (1.8 percent), office and store machines, and light motor trucks.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components increased 0.9 percent seasonally adjusted in February, after rising 1.0 percent in January. When food and energy prices are excluded, this index increased 1.0 percent for the second consecutive month. Prices for both durable and nondurable manufacturing materials, construction materials, energy goods, and containers rose in February. In contrast, the foods and feeds index declined over the month. (See table B.)

The index for durable manufacturing materials increased 1.3 percent after rising 1.8 percent a month earlier. The rise in the aluminum mill shapes index slowed to 6.4 percent in February from 9.6 percent in the previous month. Prices for hot rolled steel bars and prepared paints also rose less than in January. Indexes for aluminum, copper, and for copper and brass mill shapes turned down after rising a month ago. The rise in the cold rolled steel sheet index, however, accelerated to 4.2 percent from 0.6 percent in January. Prices for building paper and board turned up after falling a month earlier.

The rise in the index for nondurable manufacturing materials slowed to 1.7 percent in February from 2.0 percent a month earlier. The primary organic chemicals index turned down 0.9 percent in February after rising 3.4 percent in the previous month. Prices for inedible fats and oils and paint materials also fell after rising in January. Indexes for miscellaneous basic organic chemicals, nitrogenates, and for plastic resins and materials rose less than in the previous month. By contrast, the index for alkalies and chlorine turned up 10.6 percent after declining 2.1 percent in January. Prices for medicinal and botanical chemicals also rose after falling a month earlier. In addition, indexes for paper and gray fabrics rose more than in January.

Prices for intermediate foods and feeds registered a 0.2 percent decline in February after increasing 0.7 percent in January. The index for prepared animal feeds turned down 1.3 percent after rising 0.2 percent in January. Prices for pork and for beef and veal rose less than in the prior month. In addition, the flour index fell more than in January. The index for fluid milk products, however, turned up 1.1 percent after falling the same amount a month earlier. Prices for canned milk products also rose after declining in the previous month. The natural and processed cheese index rose more than in January.

The index for materials and components for construction rose 0.4 percent in February after increasing 0.6 percent in the previous month. The softwood lumber index declined 5.7 percent in February after falling 1.3 percent a month earlier. The millwork index declined after remaining unchanged in January. Prices for fabricated structural metal products, nonferrous wire and cable, and concrete products rose less than a month ago. In contrast, the index for gypsum products turned up 2.7 percent in February after falling 1.1 percent a month earlier. Prices for plumbing fixtures and brass fittings and plastic construction products rose more than in January.

The rise in the Producer Price Index for intermediate energy goods slowed to 0.8 percent from 1.0 percent in January. The gasoline index increased 0.8 percent in February after rising 7.9 percent in the previous month. Prices for residual fuel and natural gas to electric utilities turned down after increasing a month earlier. The industrial natural gas index fell more than a month ago. The diesel fuel index, however, turned up 5.7 percent in February after falling 1.1 percent a month earlier. Prices for liquefied petroleum gas and both commercial and industrial electric power rose more than in January. In addition, the jet fuel index fell less than a month ago.

The rise in the container index accelerated to 3.9 percent in February from 1.9 percent in January. The index for paper boxes and containers increased 3.3 percent after rising 2.4 percent in the previous month, and aluminum can prices surged 19.6 percent after increasing 3.6 percent a month earlier.

Crude goods

The Producer Price Index for Crude Materials for Further Processing advanced 1.5 percent in February, following a 1.0 percent rise in January. The index for basic industrial materials rose less in February than in January, while the indexes for both foodstuffs and feedstuffs and crude energy materials rose after falling in the previous month. (See table B.)

The crude energy materials index jumped 4.5 percent in February after 5 consecutive months of price declines. The index for natural gas to pipelines declined less than in the previous month. Crude petroleum prices rose more rapidly in February (5.4 percent) than in January (2.5 percent). However, coal prices fell 1.1 percent, after declining 0.1 percent in January.

Prices for the crude foodstuffs and feedstuffs index gained 1.2 percent for the month after dropping 0.1 percent last month. The index for fresh and dried vegetables fell 6.0 percent, significantly less than the 26.6 percent decline in the previous month. Prices for slaughter turkeys also fell less in February than in January. Prices for slaughter broilers, corn, fluid milk, and wheat increased after declining in January. In contrast, prices for both slaughter hogs and slaughter cattle rose less than in the previous month.

Price increases for the crude nonfood materials less energy index slowed from 3.0 percent in January to 1.4 percent in February. The iron and steel scrap index fell 0.9 percent, after moving up 4.8 percent in January. Indexes for aluminum base scrap, copper base scrap, pulpwood logs, and silver ores also turned down after increasing in the preceding month. Price increases slowed for wastepaper, copper ores, raw cotton, and phosphates. The index for softwood logs, however, rose 4.2 percent in February after rising 0.6 percent a month earlier.

Net output price indexes for mining, manufacturing, and other industries

Mining. The Producer Price Index for the net output of total domestic mining industries increased 1.3 percent in February after falling in both of the previous 2 months. (Net output price indexes are not seasonally adjusted.) In February, prices turned up 1.8 percent after falling 1.0 percent a month earlier for the oil and gas extraction industry group index. The index for nonmetallic minerals mining rose about 1 percent for the second consecutive month. By contrast, prices turned down after rising in the previous month for the anthracite mining industry group. Prices for the bituminous coal and lignite mining industry group fell 0.9 percent, after moving down 0.3 percent a month earlier. Price increases for the metal mining industry group slowed from 3.9 percent in January to 0.8 percent in February.

Manufacturing. The Producer Price Index for total domestic manufacturing industries advanced 0.5 percent in February, about the same as in January. In February, prices for the paper industry group increased 3.1 percent after rising 2.2 percent in January; this index is about 16 percent higher than its level of a year ago. Price increases were registered for all of the industry groups comprising the manufacturing sector except lumber and wood products and transportation equipment which were unchanged. The largest advances were for petroleum refining (1.8 percent), chemicals and allied products (1.7 percent), and primary metal industries (1.5 percent).

Other. Among other industries, prices for waste paper collection advanced almost 10 percent in February, the fourth consecutive substantial monthly increase. Other large increases in February occurred for passenger car rental (5.8 percent), non-air courier services (4.3 percent), local trucking with storage (3.2 percent), and scheduled air passenger transportation (2.3 percent).

Prices turned up after showing little or no change a month earlier for farm products warehousing and storage and for air courier services. Price increases accelerated for medical laboratories and for skilled and intermediate care facilities. Several categories were unchanged after rising substantially in the previous month: U. S. Postal Service; water transportation of freight, not elsewhere classified; crude petroleum pipelines; and refined petroleum pipelines. Prices turned down in February after rising in January for metal scrap collection, electric power utilities, natural gas utilities, freight transportation arrangement, and for tugging and towing services. Price increases slowed for hotels and motels and for offices and clinics of doctors of medicine.

Information in this news release will be made available to sensory impaired individuals upon request. Voice phone: 202-606-7828; TDD phone: 202-606- 5897; TDD Message Referral phone: 1-800-326-2577. Table 1. Producer Price Indexes and percent changes by stage of processing (1982=100)

1/ Comprehensive relative importance figures are computed 6/ Percent of total finished goods. once each year in December. 7/ Percent of total intermediate materials. 2/ Data for Oct. 1994 have been revised to reflect the availability 8/ Formerly titled "Crude materials for of late reports and corrections by respondents. All data are subject further processing, excluding crude to revision 4 months after original publication. foodstuffs and feedstuffs, plant and 3/ Not seasonally adjusted. animal fibers, oilseeds, and leaf tobacco." 4/ Includes crude petroleum. 9/ Percent of total crude materials. 5/ Excludes crude petroleum. Table 2. Producer Price Indexes and percent changes for selected commodity groupings by stage of processing (1982=100 unless otherwise indicated)

See footnotes at end of table. Table 2. Producer Price Indexes and percent changes for selected commodity groupings by stage of processing - Continued (1982=100 unless otherwise indicated)

1/ Data for October 1994 have been revised to reflect 2/ Not seasonally adjusted. the availability of late reports and corrections by respondents. 3/ Not available. All data are subject to revision 4 months after original publication. Table 3. Producer Price Indexes for selected commodity groupings (1982=100 unless otherwise indicated)

1/ Data for Oct. 1994 have been revised to reflect the availability of late reports and corrections by respondents. All data are subject to revision 4 months after original publication.

2/ Prices of some items in this grouping are lagged 1 month.

Table #4 Producer price indexes for the net output of major industry groups