April 1995 Producer Price Index

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The Producer Price Index for Finished Goods increased 0.5 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This followed no change in March and advances in each of the four preceding months. Prices received by domestic producers of intermediate goods moved up 0.7 percent in April, after increasing 0.3 percent March. The Crude Goods Price Index rose 2.1 percent after decreasing 1.3 percent in March. (See table A.)

The rise in the April Finished Goods index was led by a turnaround in the prices for energy goods, especially gasoline. The index for finished goods other than foods and energy moved up 0.3 percent after rising 0.1 percent in the previous month. Food prices decreased 0.2 percent for the second consecutive month.

1995 Jan. 0.3 -0.6 2.3 0.2 1.6 r1.1 r0.4 Feb. 0.3 0.3 0.4 0.3 1.7 0.9 1.5 Mar. 0 -0.2 -0.5 0.1 1.6 0.3 -1.3 Apr. 0.5 -0.2 2.3 0.3 2.1 0.7 2.1 r=revised. Some percent changes shown here and elsewhere is this release may differ from those previously reported because indexes for December 1994 have been recalculated to incorporate late reports by respondents. All indexes are subject to revision four months after original publication.

Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.6 percent in April to 127.6 (1982 =100). From April 1994 to April 1995, the Finished Goods Price Index rose 2.1 percent. During this same period, consumer food prices increased 1.1 percent, prices for finished energy goods advanced 4.4 percent, and prices for finished goods other than foods and energy were up 2.0 percent. Prices received by domestic producers of intermediate goods increased 6.7 percent during the 12 months ended in April 1995, and crude material prices declined 0.2 percent over the same period.

Finished goods

The Producer Price Index for finished energy goods rose 2.3 percent in April, following a 0.5 percent decline in March. Gasoline prices advanced 7.7 percent in April (12.4 percent before seasonal adjustment) after falling 2.1 percent in March. Prices for home heating oil increased somewhat less in April (0.5 percent) than in March (0.7 percent). Prices for residential natural gas fell 0.3 percent after declining 0.6 percent a month earlier. Prices for residential power were unchanged after moving up 0.2 percent in March.

Prices for finished consumer foods moved down 0.2 percent in April, the same as in March. Declines occurred for beef and veal (7.6 percent), processed turkeys (3.1 percent), pork (2.3 percent), shortening and cooking oils (1.3 percent), dairy products (0.8 percent), and processed young chickens (0.7 percent). By contrast, the index for fresh and dry vegetables advanced 17.8 percent after rising 5.7 percent in the previous month. Prices also increased in April for processed finfish and shellfish (4.7 percent), eggs for fresh use (3.0 percent), roasted coffee, and confectionery end products.

1995 Jan. r0.6 r1.1 1.0 5.2 r0 r-3.0 r2.8 -2.2 Feb. -0.2 0.8 1.0 5.7 1.2 4.5 1.4 0.9 Mar. 0.3 0.1 0.4 5.9 -2.4 -1.6 0.5 -1.7 Apr. -1.1 1.5 0.7 6.7 -0.9 6.2 1.2 -0.2 r=revised. Some percent changes shown here and elsewhere is this release may differ from those previously reported because indexes for December 1994 have been recalculated to incorporate late reports by respondents. All indexes are subject to revision four months after original publication.

The index for consumer goods other than foods and energy moved up 0.3 percent in April, after increasing 0.2 percent in March. Prices turned up after falling a month earlier for passenger cars, alcoholic beverages, girls' apparel, sporting goods, floor coverings, and household glassware. Price increases accelerated for prescription drugs, light trucks, toys, and gold jewelry. By contrast, prices turned down in April after rising in March for cosmetics, tires and tubes, over-the-counter drugs, and home electronic equipment. The index for tobacco products increased 0.3 percent after rising 0.9 percent a month earlier. Price increases also slowed for women's apparel, household furniture, books, and mobile homes. Prices for newspaper circulation were unchanged after increasing 0.7 percent in the previous month.

In April, the capital equipment index increased 0.3 percent after inching down 0.1 percent in March. Price increases accelerated for light motor trucks, commercial furniture, agricultural machinery, printing trades machinery, office and store machines, and railroad equipment. Price declines for ships slowed from 2.2 percent in March to 0.1 percent in April; price declines also slowed for electronic computers. Prices turned up after falling a month earlier for transformers and paper industry machinery. Prices for heavy trucks rose 0.4 percent, the same as in March. Price increases slowed for truck trailers, construction machinery, and oil field machinery.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components increased 0.7 percent, seasonally adjusted in April, after rising 0.3 percent in March. When food and energy prices are excluded, this index also increased 0.7 percent in April after rising 0.4 percent in the previous month. Prices for nondurable manufacturing materials, energy goods, construction materials, and durable manufacturing materials rose more than in March. In contrast, the foods and feeds index turned down after rising in the previous month. (See table B.)

The rise in the index for nondurable manufacturing materials accelerated to 2.5 percent in April from 0.6 percent a month earlier. The miscellaneous basic organic chemicals index turned up 3.8 percent after falling 0.7 percent in the previous month. Prices for primary basic organic chemicals, paint materials, and synthetic fibers also rose after declining in March. Indexes for paperboard, paper, and for plastic resins and materials increased more than a month ago. The rise in the index for intermediate basic organic chemicals, however, slowed to 2.6 percent from 5.2 percent in March.

The index for intermediate energy goods increased 1.5 percent after rising 0.1 percent a month earlier. The index for gasoline turned up 7.7 percent after falling 2.1 percent in the previous month. Prices for jet fuels also rose after declining in March. Indexes for diesel fuel and liquid asphalt rose more than a month earlier. By contrast, the rise in the residual fuel index slowed to 1.2 percent from 15.7 percent in March. Prices for both commercial and industrial electric power and for natural gas to electric utilities turned down after rising in the previous month.

The index for construction materials rose 0.4 percent in April, slightly more than the 0.3 percent increase in the previous month. Price increases for plastic construction products, gypsum products, asphalt felts and coatings, and cement outweighed declines for softwood lumber, plumbing fixtures and brass fittings, plywood, and millwork.

The Producer Price Index for durable manufacturing materials increased 0.2 percent after rising 0.1 percent in the previous month. Increases for cement, silver, platinum, and zinc more than offset declines for copper, aluminum, copper and brass mill shapes, plywood, hardwood lumber, and for building paper and board.

The index for intermediate foods and feeds turned down 1.1 percent in April after rising 0.3 percent a month earlier. Prices for beef and veal declined 7.6 percent after falling 0.8 percent in the previous month. Prices for confectionery materials and refined sugar also fell more than a month earlier. Indexes for crude vegetable oils and natural and processed cheese turned down after rising in March. In addition, prices for fluid milk products rose less than in the previous month. Conversely, the flour index turned up 1.8 percent in April after falling 1.1 percent a month earlier, and pork prices fell less than in March.

Crude Goods

The Producer Price Index for Crude Materials for Further Processing advanced 2.1 percent, seasonally adjusted, after falling 1.3 percent during the prior month. Prices for basic industrial materials rose more in April than in March, while energy prices rose sharply, after declining a month earlier. Price decreases slowed for foodstuffs and feedstuffs.

The crude energy index showed a substantial gain of 6.2 percent, following a 1.6 percent decline during the previous month. Prices turned up, after falling a month earlier, for natural gas (3.3 vs. -3.3 percent) and crude petroleum (8.3 vs. -0.8 percent). In addition, prices for coal rose 3.1 percent in April, slightly more than in March.

Price declines for the crude foodstuffs and feedstuffs slowed to 0.9 percent in April from 2.4 percent in March. The index for slaughter cattle fell 4.0 percent, somewhat less than the 6.5 percent drop in March. Following a substantial decrease of 11.1 percent in March, prices for alfalfa hay were unchanged in April. Price increases accelerated in April for corn and for fresh and dry vegetables. By contrast, prices for fluid milk and unprocessed shellfish turned down after rising in the preceding month. Slaughter hog prices fell much more rapidly in April than in March.

In April, the index for basic industrial materials rose 1.2 percent, compared with a 0.5 percent increase during the previous month. Price declines slowed for aluminum base scrap, iron and steel scrap, and leaf tobacco. The index for copper base scrap moved up 4.2 percent, after falling 1.4 percent last month. Softwood logs registered a 1.9 percent gain, following a 1 percent increase in March. However, prices for cattle hides and raw cotton turned down after increasing in the prior month. Price increases for wastepaper and pulpwood logs slowed in April.

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

Mining. The Producer Price Index for the net output of total domestic mining industries advanced 3.7 percent in April after decreasing 0.7 percent in March. (Net output price indexes are not seasonally adjusted.) Prices for the oil and gas extraction industry group turned up 4.5 percent after falling 2.2 percent in the previous month. The metal mining industry group index increased 3.1 percent following a 2.8 percent rise in March. Prices for the bituminous coal and lignite mining industry group rose over 3 percent for the second consecutive month. By contrast, the indexes for the anthracite mining and nonmetallic minerals mining industries group moved down after showing no change in the previous month.

Manufacturing. The Producer Price Index for total domestic manufacturing industries moved up 0.6 percent in April, after rising 0.2 percent in March. Prices for the petroleum refining industry group turned up 8.5 percent after falling 0.5 percent in March. Price increases accelerated for the industry groups for paper and allied products and for chemicals and allied products. Prices continued to increase for the industry groups for printing and publishing and nonmetallic mineral products. By contrast, indexes turned down after rising in March for the industry group for lumber and wood products. Price increases slowed for the industry groups for tobacco manufactures, rubber and plastic products, and primary metal industries. Prices turned down after rising a month earlier for the industry groups for food and kindred products.

Other. Among other industries, prices for waste paper collection increased 7.4 percent after increasing 16.6 percent in March. Price increases also slowed for freight transportation along the Great Lakes, airports and airport services, radio broadcasting, hotels and motels, help supply agencies, and for truck rental and leasing. Prices turned down in April after rising a month earlier for local trucking with storage, water transportation of freight (not elsewhere classified), scheduled air transportation, electric power utilities, employment agencies, and passenger car rental. Prices fell more in April than in March for travel agencies. Prices continued to fall for marine cargo handling and natural gas utilities.

By contrast, prices turned up in April after falling in March for freight transportation arrangement, nonferrous metal scrap collection, and other specialty hospitals. The index for psychiatric hospitals increased 1.3 percent following no change in the previous month. Price increases accelerated for cable and other pay television services. Price declines slowed for ferrous metal scrap collection. Prices continued to rise for deep sea domestic transportation of freight and for building cleaning and maintenance services.

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