July 1995 Producer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Producer Price Index for Finished Goods was unchanged, seasonally adjusted, from June to July. The Finished Goods Price Index dipped slightly in June and showed no change in May. Prices received by domestic producers of intermediate goods also were unchanged in July; this index inched up 0.1 percent in June. Crude material prices declined 0.8 percent in July after increasing 0.7 percent in the previous month. (See table A.)

Among finished goods in July, increases for consumer nondurable goods other than energy and for capital equipment were offset by declines for finished energy goods and for consumer durable goods. The index for finished goods other than foods and energy increased 0.2 percent in July, about the same as in recent months.

Change in Except finished Inter- goods foods from 12 mediateCrude and months Month Total Foods Energy energy ago goods goods (unadj.) 1994 July 0.2 0.4 0.9 0.1 0.6 0.3 -0.4 Aug. 0.6 0.2 2.3 0.2 1.9 0.7 0 Sept. -0.3 -0.2 -2.4 0.1 1.5 0.4 -2.4 Oct. -0.4 -0.1 -1.3 -0.4 1.0 0.3 -0.6 Nov. 0.6 1.0 2.2 0.2 1.3 0.8 0.6 Dec. 0.3 1.3 -0.9 0.2 1.7 0.4 0.5

Before seasonal adjustment, the Producer Price Index for Finished Goods moved up 0.1 percent in July to 128.3 (1982 = 100). From July 1994 to July 1995, the Finished Goods Price Index rose 1.8 percent. During this same period, consumer food prices also rose 1.8 percent. The finished energy goods index increased 0.5 percent, and prices for finished goods other than foods and energy advanced 2.1 percent. The Intermediate Goods Price Index advanced 6.1 percent during the 12 months ended in July 1995, and prices for crude goods moved down 0.3 percent.

Finished goods

The Producer Price Index for finished consumer foods increased 1.2 percent, seasonally adjusted, in July after falling in each of the previous 4 months. Prices turned up after falling a month earlier for fresh fruits and melons, finfish and shellfish, shortening and cooking oils, and dairy products. Prices rose more rapidly in July than in June for pork, processed young chickens and turkeys, and eggs for fresh use. Soft drink prices increased 0.8 percent after showing no change a month earlier. The index for fresh and dry vegetables fell much less in July (-2.2 percent) than in June (-16.6 percent). Prices for pasta products were unchanged after falling 5.5 percent a month earlier. By contrast, prices turned down after rising in June for roasted coffee. The index for beef and veal continued to increase, but somewhat less rapidly in July (3.2 percent) than in June (3.8 percent). Price increases slowed markedly for milled rice.

The Producer Price Index for finished energy goods moved down 2.5 percent in July after declining 1.0 percent in June. Gasoline prices fell more in July (-10.1 percent) than in June (-3.1 percent), following increases in May (2.0 percent) and April (6.1 percent). Price declines for home heating oil slowed from -5.8 percent in June to -2.2 percent in July. Prices turned up after falling a month earlier for residential natural gas.

The index for consumer goods other than foods and energy increased 0.2 percent for the second consecutive month. The largest increases were for books, newspapers, soaps and detergents, and sanitary papers. By contrast, prices declined for passenger cars (-0.7 percent), light trucks (-0.3 percent), and household flatware (-0.7 percent).

The capital equipment index inched up 0.1 percent in July following a 0.2 percent rise in both May and June. Increases were registered for civilian aircraft, agricultural machinery, oil field and gas field machinery, machine tools, and heavy motor trucks. These advances slightly outweighed declines for paper industries machinery and light trucks.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components was unchanged, seasonally adjusted, in July, after rising 0.1 percent in June. Excluding food and energy prices, this index increased 0.3 percent, after rising 0.2 percent in both of the last 2 months. Price declines for energy goods were offset by increases for construction materials, foods and feeds, as well as for both durable and nondurable manufacturing materials. (See table B.)

The index for intermediate energy goods declined 2.4 percent in July after falling 1.3 percent a month earlier. The index for gasoline fell 10.1 percent after declining 3.1 percent in June. Prices for diesel fuel and liquefied petroleum gas also fell more than in the previous month. Indexes for residual fuel and both industrial and commercial natural gas turned down after rising a month ago. By contrast, the index for industrial electric power turned up 0.3 percent after falling 2.0 percent in June; commercial electric power prices fell less than a month earlier.

The index for construction materials rose 0.6 percent in July after declining 0.1 percent a month earlier. The index for softwood lumber turned up 6.8 percent after falling 0.8 percent in the previous month. Prices for plywood, wiring devices, plastic construction products, and for air conditioning and refrigeration equipment also advanced after declining in June. Indexes for millwork and non-fluid power metal valves rose more than in the preceding month. By contrast, the index for heating equipment turned down 0.1 percent after rising 0.6 percent in the prior month, and prices for gypsum products fell more than in June.

The rise in the intermediate foods and feeds index accelerated to 1.5 percent in July from 1.0 percent a month earlier. The index for fluid milk products turned up 2.2 percent after falling 2.8 percent in June. Prices for both condensed and evaporated milk and for miscellaneous meats also increased after declining in the previous month. Indexes for pork and flour rose more than in the prior month. By contrast, the confectionery materials index declined 3.6 percent in July after falling 0.4 percent a month earlier. Prices for crude vegetable oils turned down after rising in June, and the beef and veal index rose less than in the previous month.

Price increases for nondurable manufacturing materials slowed to 0.3 percent in July from 0.7 percent in the previous month. The July rise in this index is the smallest increase in 17 months. The index for woodpulp rose 2.4 percent after surging almost 16 percent in June. Paperboard prices also increased less than in the previous month. Indexes for nitrogenates and gray fabric turned down after rising a month earlier. In addition, plastic resin and material prices fell more than in the prior month. Conversely, the index for miscellaneous basic organic chemicals turned up 1.6 percent after falling 0.2 percent in June. Prices for both synthetic fibers and for alkalies and chlorine also increased after declining a month earlier.

The index for durable manufacturing materials turned up 0.3 percent in July after falling in both of the last 2 months. The index for plywood turned up 4.3 percent after falling 3.5 percent a month earlier. Prices for flat glass, building paper and board, and for cold rolled steel sheet and strip also rose after declining in the previous month. The index for aluminum mill shapes fell less than a month earlier. The index for hot rolled steel sheet and strip, however, turned down 0.3 percent in July after rising 1.2 percent in the previous month. Prices for aluminum also fell after increasing in the previous month, and the index for copper and brass mill shapes rose less than in June.

Crude Goods

The Producer Price Index for Crude Materials for Further Processing declined 0.8 percent in July, seasonally adjusted, after rising 0.7 percent during the previous month. Prices for crude energy materials fell more rapidly in July than in June. The index for basic industrial materials turned down 1.8 percent in July after rising 0.6 percent in the prior month. Prices for crude foodstuffs and feedstuffs rose about 4 percent for the second consecutive month. (See table B.)

In July, the index for crude energy materials was down 5.4 percent following a 2.7 percent decline last month. Prices for crude petroleum dropped 9.3 percent in July compared with a decline of 4.6 percent during the prior month. The index for natural gas also fell more than in June. By contrast, coal prices inched up 0.2 percent, following a decrease of 1.2 percent a month earlier.

The index for crude nonfood materials less energy turned down 1.8 percent in July after moving up 0.6 percent the previous month. Following significant price increases last month, prices for raw cotton, hardwood logs, bolts and timber, and for pulpwood logs, bolts and timber all turned down in July. In addition, prices for softwood logs, bolts, and timber and for wastepaper fell faster in July than in June. The index for iron ores, however, rose 10.7 percent in July after showing no change a month earlier. Prices for copper ores increased more than in the previous month, and the cattle hides index turned up after falling in June.

After advancing 4.0 percent in June, the index for crude foodstuffs and feedstuffs rose another 4.1 percent in July. Price increases for slaughter hogs, wheat, Irish potatoes for processing, and unprocessed finfish outweighed declines for fresh vegetables except potatoes, hay, fluid milk, and slaughter cattle.

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

Mining. The Producer Price Index for the net output of total domestic mining industries decreased 3.6 percent in July after falling 2.3 percent in the previous month. (Net output price indexes are not seasonally adjusted.) Prices for the oil and gas extraction industry group fell more in July (-5.6 percent) than in June (-2.9 percent). The index for the anthracite mining industry group was unchanged after increasing in the previous month. However, the index for the bituminous coal and lignite mining industry group turned up slightly in July after declining in June. Prices rose much more rapidly than in the previous month for the metal mining industry group.

Manufacturing. The Producer Price Index for total domestic manufacturing industries inched down 0.1 percent in July after showing no change in June. In July, a 5.4-percent decline was registered for the petroleum refining industry group; this index decreased 1.5 percent in June. Prices increased, however, for food and kindred products, lumber and wood products, paper and allied products, and for printing and publishing industry groups.

Other. Among other industries, prices for waste paper collection fell 10.2 percent in July after falling about half as much in June. Prices also declined more than in the previous month for tugging and towing services. Prices turned down after rising in June for scheduled air cargo transportation and deep sea domestic transportation of freight. Price increases slowed markedly for electric power utilities and nonferrous metal scrap collection. By contrast, prices turned up after falling a month earlier for passenger car rental and freight transportation arrangement. Prices rose after showing no change in the previous month for medical laboratories and local trucking without storage. Price increases accelerated for Mississippi River transportation of freight, scheduled air passenger transportation, and for truck rental and leasing. Prices fell less in July than in June for travel agencies.

Resampling of industries

Effective with this release, another set of resampled industries is introduced into the PPI. Under the resampling procedure, the list of producers sampled for an industry is updated to reflect more accurately the current structure, membership, technology, or product mix of an industry. The Bureau of Labor Statistics published the first results of this systematic process in July 1986. Subsequent efforts have been completed at 6-month intervals.

Thirty-four new or resampled industries are being introduced this month. Among the newly introduced series are data for accounting, auditing, and bookkeeping services and for advertising services. In addition, an index for the telephone communications services industry is being introduced this month. Indexes for selected telephone services that are published in table 9 of the monthly detailed report, Producer Price Indexes, will be discontinued effective next month with the publishing of data for July 1995. The newly introduced indexes for telephone communications (SIC 4813) are not continuous with the previously published indexes for selected telephone services. The newly introduced indexes are comprised of an entirely revised and updated sample; the coverage is much more comprehensive. See the July 1995 issue of Producer Price Indexes for a special article, "New Producer Price Index for the Telecommunications Industry." The new indexes for the products of the telephone communications industry appear in table 5 of Producer Price Indexes.

Standard Industrial Classification (SIC) code Industry

2022 Natural, processed, and imitation cheese 2033 Canned fruits, vegetables,preserves,jams, and jellies 2075 Soybean oil mills 2258 Lace and warp knit fabric mills 2323 Men's and boys' neckwear 2341 Women's, misses', children's, and infants underwear and nightwear 2342 Brassieres, girdles, and allied garments 2421 Sawmills and planing mills 2436 Softwood veneer and plywood 2512 Wood household furniture 2522 Office furniture, except wood 2652 Setup paperboard boxes 2731 Book publishing or publishing and printing 2819 Industrial inorganic chemicals, n.e.c.

2865 Cyclic organic crudes and intermediates, and organic dyes and pigments 2869 Inorganic chemicals, n.e.c. 2992 Lubricating oils and greases 3011 Tires and inner tubes 3052 Rubber and plastics hose and belting 3131 Boot and shoe cut stock and findings 3221 Glass containers 3441 Fabricated structural metal 3493 Steel springs, except wire 3495 Wire springs 3545 Cutting tools, machine tool accessories, and machinists' precision measuring devices 3554 Paper industries machinery 3555 Printing trades machinery and equipment 3586 Measuring and dispensing pumps 3624 Carbon and graphite products 3641 Electric lamp bulbs and tubes 3713 Truck and bus bodies 4813 Telephone communications, except radiotelephone 7311 Advertising agencies 8721 Accounting, auditing, and bookkeeping services

For information on specific additions, deletions, and recodes of indexes that are effective this month, see tables 13 through 19 of Producer Price Indexes, Data for July 1995.

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