August 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 inched down 0.1 percent in August, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. The Finished Goods Price Index was unchanged in July and moved down 0.1 percent in June. As in July, prices received by domestic producers of intermediate goods were unchanged in August. Crude material prices declined 1.4 percent after falling 0.8 percent in the previous month. (See table A.)

Among finished goods in August, a decrease in the index for energy goods outweighed a slight increase in prices for other finished goods. The index for finished goods other than foods and energy increased 0.1 percent in August after moving up 0.2 percent in each of the previous 3 months.

Change in Except finished Inter- goods foods from 12 mediateCrude and months Month Total Foods Energy energy ago goods goods (unadj.) 1994 Aug. 0.6 0.2 2.3 0.2 1.9 0.7 0.0 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

reported because indexes for April 1995 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision four months after original publication.

Before seasonal adjustment, the Producer Price Index for Finished Goods decreased 0.2 percent in August to 128.1 (1982 = 100). From August 1994 to August 1995, the Finished Goods Price Index rose 1.3 percent. During this same period, consumer food prices rose 1.6 percent. The finished energy goods index decreased 2.7 percent, and prices for finished goods other than foods and energy advanced 2.0 percent. The Intermediate Goods Price Index increased 5.4 percent during the 12 months ended in August 1995, and prices for crude goods moved down 1.7 percent.

Finished goods

The Producer Price Index for finished energy goods moved down 0.9 percent in August after declining 2.5 percent in July and 1.0 percent in June. Gasoline price decreases slowed from 10.1 percent in July to 1.9 percent in August. Price declines for home heating oil slowed to 1.2 percent from 2.2 percent in the previous month. Prices turned down after rising a month earlier for residential natural gas. Prices for residential electric power increased modestly for the fourth consecutive month.

The Producer Price Index for finished consumer foods was unchanged, seasonally adjusted, in August after increasing 1.2 percent in July. Indexes turned down after rising a month earlier for beef and veal and for shortening and cooking oils. Prices turned down after showing no change in the previous month for pasta products. Prices for fresh and dry vegetables fell 12.7 percent after declining 2.2 percent in July. Price increases for pork slowed from 7.4 percent a month earlier to 1.5 percent in August. Price increases also slowed markedly for finfish and shellfish, eggs for fresh use, soft drinks, processed fruits and vegetables, and milled rice. Prices continued to rise rapidly for processed chickens and turkeys. Price increases accelerated for dairy products, bakery products, and fresh fruits and melons.

The index for finished consumer goods other than foods and energy moved up 0.1 percent in August after increasing 0.2 percent in both June and July. Increases were registered for passenger cars, light trucks, newspapers, periodicals, and sanitary papers. Decreases occurred for cosmetics and other toilet preparations, household glassware, tires and tubes, and for sporting and athletic goods.

In August, the capital equipment index inched up 0.1 percent, the same as in July. Increases for motor vehicles, metal cutting machine tools, tools and dies, and railroad equipment outweighed declines for electronic computers.

Intermediate goods

The August Producer Price Index for Intermediate Materials, Supplies, and Components remained unchanged, seasonally adjusted, for the second consecutive month. Price increases for foods and feeds and construction materials were offset by declines for energy goods and for both nondurable and durable manufacturing materials. Excluding food and energy prices, this index increased 0.1 percent, after rising 0.3 percent in July. (See table B.)

The index for intermediate foods and feeds advanced 1.1 percent in August after rising 1.5 percent a month earlier. The index for beef and veal turned down 3.4 percent after rising 3.2 percent in July. Prices for fluid milk products and for natural and processed cheese also declined after increasing in the previous month. Indexes for pork and flour rose less than a month ago. By contrast, the rise in the prepared animal feeds index accelerated to 2.4 percent from 1.1 percent in July. Prices for confectionery materials fell less than a month earlier, and the crude vegetable oils index turned up after falling in the previous month.

The index for construction materials rose 0.3 percent after increasing 0.6 percent a month earlier. The advance in the softwood lumber index slowed to 2.5 percent from 6.8 percent in July. Prices for plywood, fabricated structural metal products, and wiring devices also rose less than in the previous month. Indexes for nonferrous wire and cable, switchgear, and for plumbing fixtures and brass fittings turned down after rising in the preceding month. Conversely, the rise in the index for plastic construction products accelerated to 0.8 percent from 0.2 percent in the prior month. Prices for millwork rose more than in July, and the index for gypsum products fell less than in the previous month.

The decline in the index for intermediate energy goods slowed to 0.7 percent from 2.4 percent in July. The index for gasoline fell 1.9 percent after decreasing 10.1 percent in the previous month. Prices for jet fuels and industrial natural gas also fell less than a month earlier. Indexes for diesel fuel and commercial electric power turned up after falling in the prior month. In addition, prices for liquid asphalt rose more than a month ago. By contrast, the index for liquefied petroleum gas declined 8.6 percent after falling 3.8 percent in July. Prices for commercial natural gas also fell more than in the previous month, and the industrial electric power index rose less than a month earlier.

The index for nondurable manufacturing materials turned down 0.1 percent in August after rising 0.3 percent a month ago. The August decline was the first in 18 months. The rise in the index for paper slowed to 0.6 percent from over 2 percent in July. Prices for miscellaneous basic organic chemicals also rose less than in the previous month. Indexes for intermediate basic organic chemicals and miscellaneous inorganic chemicals turned down after rising a month earlier. In addition, primary basic organic chemical prices fell more than in the prior month. On the other hand, the index for phosphates turned up 2.6 percent after falling about the same amount in July. Prices for gray fabrics also increased after declining a month earlier. The index for nitrogenates fell less than in the prior month, and paperboard prices rose more than in July.

The index for durable manufacturing materials turned down 0.1 percent after rising 0.3 percent in the previous month. The index for hot rolled steel sheet and strip fell 1.7 percent after decreasing 0.3 percent in July. Prices for copper and brass mill shapes, cold rolled steel sheet and strip, copper, and flat glass turned down after rising in the previous month. The index for plywood rose less than a month earlier. The decline in the aluminum mill shapes index, however, slowed to 0.1 percent in August from 1.5 percent in the previous month. Prices for hot rolled steel bars rose after remaining unchanged a month earlier, and the aluminum index turned up after falling in July.

Crude goods

After falling 0.8 percent in July, the Producer Price Index for Crude Materials for Further Processing fell 1.4 percent, seasonally adjusted, in August. Prices for crude foodstuffs and feedstuffs rose 0.7 percent in August after increasing 4.1 percent in the prior month. By contrast, the indexes for crude energy materials and basic industrial materials fell slightly less in August than in July. (See table B.)

In August, the index for crude foodstuffs and feedstuffs rose 0.7 percent, after gaining about 4 percent in each of the past 2 months. Prices for corn, wheat, and slaughter hogs rose less than in July. The index for soybeans showed no change following a drop of over 10 percent during the preceding month. Prices for Irish potatoes for processing turned down 11.8 percent following a decline of 45.5 percent in July. By contrast, prices for slaughter broilers rose considerably more than in July. In addition, the fluid milk index turned up 1.2 percent in August, after dropping 1.4 percent in July.

The index for crude energy goods declined 4.1 percent in August. Price declines for natural gas and coal outweighed an increase in crude petroleum prices.

The decline in the index for crude nonfood materials less energy slowed to 0.9 percent after falling 1.8 percent in July. Price declines for both softwood and hardwood logs, bolts, and timber slowed in August. The index for iron and steel scrap advanced considerably after showing no change last month. Prices turned up after falling for aluminum base scrap and phosphates. In contrast, the index for raw cotton indicated a sizable drop of 11.5 percent in August, following a decline of 5.7 percent in July.

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

Mining. The Producer Price Index for the net output of total domestic mining industries declined 4.3 percent in August after falling 3.6 percent in July and 2.3 percent in June. (Net output price indexes are not seasonally adjusted.) Prices for the oil and gas extraction industry group fell somewhat more in August (-6.1 percent) than in July (-5.6 percent). The indexes for the metal mining and the bituminous coal and lignite mining and industry groups both turned down after rising in July.

Manufacturing. The Producer Price Index for total domestic manufacturing industries was unchanged in August after inching down 0.1 percent in July. In August, a 1.4 percent decline was registered for the industry group for petroleum refining. Prices increased, however, for the industry groups for paper and allied products (0.6 percent) and for food and kindred products (0.3 percent). Both indexes for the machinery industry groups were unchanged from July to August. Price movements for the other manufacturing industry groups were mixed but moderate in August.

Other. Among other industries, prices for waste paper collection fell 12.7 percent in August after falling substantially in each of the previous 2 months. Other notable declines in August occurred for deep sea domestic transportation of freight, radio broadcasting, medical laboratories, travel agencies, truck rental and leasing, scheduled air transportation, and natural gas utilities. By contrast, prices increased for passenger car rental, metal scrap collection, water transportation of freight not elsewhere classified, freight transportation arrangement, and for skilled and intermediate care facilities.

Producer Price Index data for September 1995 are scheduled for release on Thursday, October 12, at 8:30 a.m. (E.D.T.)

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.