February 1998 Producer Price Index

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The Producer Price Index for Finished Goods declined 0.1 percent in February, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This decline followed decreases of 0.7 percent in January and 0.2 percent in December. The index for finished goods other than foods and energy advanced 0.1 percent, after falling 0.1 percent a month ago. Prices received by producers of intermediate goods declined 0.2 percent, following a 0.6-percent drop in the prior month. The crude goods index fell 2.5 percent, after decreasing 4.5 percent in January. (See table A.)

Among finished goods in February, the index for finished energy goods decreased 1.8 percent, following a 3.7-percent decline in the previous month. Prices for finished consumer foods and finished consumer goods other than foods and energy increased, after falling in the prior month. Prices for capital equipment declined at the same rate as in January.

1998 Jan. -0.7 -0.4 -3.7 -0.1 -1.8 -0.6 -4.5 Feb. -0.1 0.4 -1.8 0.1 -1.6 -0.2 -2.5 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1997 have been revised to reflect the availability of late reports and corrections by respondents.

Before seasonal adjustment, the Producer Price Index for Finished Goods fell 0.1 percent in February to 130.1 (1982=100). From February 1997 to February 1998, the Finished Goods Price Index decreased 1.6 percent. Over the past 12 months, prices for finished consumer foods declined 0.1 percent, the index for finished energy goods fell 11.0 percent, and prices for finished goods other than foods and energy advanced 0.1 percent. Prices received by domestic producers of intermediate goods decreased 1.7 percent for the 12 months ended in February, and the index for crude goods fell 13.5 percent during the same period.

Finished goods

The index for finished energy goods declined 1.8 percent in February, following a 3.7-percent decrease a month ago. Prices for gasoline fell 6.4 percent, after a 7.9-percent decrease last month. The indexes for home heating oil, residential natural gas, and finished lubricants also fell less than a month earlier. Prices for residential electric power showed no change, after a 1.3-percent decrease in the prior month.

Prices for finished consumer foods advanced 0.4 percent in February, following a 0.4-percent decline a month ago. The index for fresh fruits and melons increased 5.8 percent, after an 18.5-percent decrease in the prior month. Prices for dairy products, finfish and shellfish, and processed fruits and vegetables also rose, after falling a month earlier. The index for pork fell less than in the previous month. Prices for processed young chickens rose more than last month. By contrast, the index for fresh and dry vegetables advanced 3.9 percent, following a 12.9-percent advance a month ago. Prices for bakery products also rose less than a month earlier. The index for eggs for fresh use fell more than in January.

1998 Jan. -3.2 -2.9 -0.1 -1.7 -3.3 -7.3 -2.2 -18.7 Feb. -0.1 -1.2 -0.1 -1.7 -0.7 -6.5 0.1 -13.5 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1997 have been revised to reflect the availability of late reports and corrections by respondents.

Prices for finished consumer goods other than foods and energy advanced 0.1 percent in February, following a 0.1-percent decline a month ago. The index for cigarettes increased 2.1 percent, after showing no change in the prior month. Prices for light motor trucks, floor coverings, and men's and boy's apparel also rose, after falling a month earlier. The index for passenger cars fell less than in the previous month. On the other hand, the index for alcoholic beverages decreased 0.3 percent, following a 0.3-percent increase a month ago. Prices for prescription drugs rose less than in the prior month. The index for sanitary papers and health products fell more than last month.

Prices for capital equipment declined 0.1 percent in February, following a 0.1-percent decline a month ago. Falling prices for electronic computers, heavy motor trucks, railroad equipment, and printing trades machinery slightly outweighed rising prices for commercial furniture, light motor trucks, civilian aircraft, and communication and related equipment.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components fell 0.2 percent in February, seasonally adjusted, after falling 0.6 percent a month earlier. Prices for both intermediate energy goods and intermediate foods and feeds fell less than in January. The indexes for intermediate materials for durable manufacturing and intermediate materials for construction turned up, after falling in the previous month. By contrast, the index for materials for nondurable manufacturing fell more than a month ago. Excluding foods and energy, the intermediate materials index decreased 0.1 percent for the third consecutive month. (See table B.)

Prices for intermediate energy goods moved down 1.2 percent in February, following a 2.9-percent drop in January. The index for industrial electric power fell 0.1 percent, after decreasing 0.9 percent a month ago. Prices for gasoline, liquefied petroleum gas, #2 diesel fuel, and commercial natural gas also fell less than in the prior month. The index for residual fuel turned up, after decreasing in January. Conversely, price declines for natural gas to electric utilities accelerated from 9.0 percent in January to 10.9 percent in February. The index for coke oven products turned down, after rising in the previous month.

The index for intermediate foods and feeds inched down 0.1 percent in February, following a 3.2-percent decline in the prior month. Prices for prepared animal feeds dropped 3.5 percent, after decreasing 4.7 percent a month ago. The index for pork also fell less than in January. Prices for fluid milk products, flour, crude vegetable oils, and refined sugar turned up, after falling in the previous month. By contrast, the index for natural, processed, and imitation cheese rose 0.2 percent, following a 1.6- percent gain a month ago. Prices for beef and veal also increased less than in January. The index for mayonnaise, salad dressings, and sandwich spreads turned down, after rising in the prior month.

The index for durable manufacturing materials increased 0.1 percent in February, following a 0.7 percent decline in January. Prices for building paper and board rose 3.4 percent, after a 5.4-percent decrease in the prior month. The index for copper cathode and refined copper also increased, following a decline in the previous month. Prices for copper and brass mill shapes and aluminum mill shapes fell less than a month ago. The index for silver increased more than in the prior month. On the other hand, prices for hot rolled sheet and strip fell 0.2 percent, following a 0.6- percent gain in January. The indexes for hardwood lumber and semi-finished steel mill products also decreased, after rising in the prior month. Prices for flat glass declined more than a month ago.

The index for construction materials moved up 0.1 percent in February, after falling 0.2 percent in January. Prices for softwood lumber rose 1.4 percent, following a 2.5-percent decline in the previous month. The indexes for plywood and switchgear also turned up, after falling in the prior month. Prices for plastic construction products decreased less than a month ago. The index for fabricated structural metal products moved up slightly, after showing no change in January. By contrast, prices for nonferrous wire and cable decreased 1.1 percent, following a 0.6-percent decline in the previous month. The indexes for plumbing fixtures and brass fittings and for asphalt felts and coatings also fell more than in the prior month. Prices for air conditioning and refrigeration equipment turned down, after increasing slightly a month ago.

The index for nondurable manufacturing materials fell 0.5 percent in February, following a 0.1-percent drop in January. Prices for basic organic chemicals fell 2.2 percent, after declining 0.1 percent in the previous month. The indexes for woodpulp and for inedible fats and oils also fell more than a month ago. Prices for paper, paperboard, and for plastic resins and materials turned down, after increasing in January. The index for gray fabrics rose less than in the previous month. Conversely, the index for processed yarns and threads rose 1.4 percent, after showing no change in January. Prices for basic inorganic chemicals, finished fabrics, and synthetic fibers rose, after falling last month. The index for fertilizer materials decreased less than in January.

Crude goods

The Producer Price Index for Crude Materials for Further Processing declined 2.5 percent in February, seasonally adjusted, following a 4.5- percent drop in January. Prices for crude foodstuffs and feedstuffs and for crude energy materials also fell less than in the prior month. The index for basic industrial materials turned up in February, after falling in January. (See table B.)

Prices for crude foodstuffs and feedstuffs declined 0.7 percent in February, after decreasing 3.3 percent in the prior month. The index for slaughter hogs fell 2.3 percent, following a drop of 19.6 percent a month ago. Prices for corn also fell less than in the previous month. The indexes for soybeans, fresh fruits and melons, and wheat turned up in February, after declining in January. By contrast, prices for slaughter cattle decreased 4.8 percent in February, following a decline of 2.8 percent in January. The indexes for fresh and dry vegetables, fluid milk, and for slaughter broilers and fryers rose less than in the prior month.

The index for crude energy materials decreased 6.5 percent in February, after posting a 7.3-percent decline in January. Prices for crude petroleum fell 2.3 percent, following a 12.8-percent drop in the prior month. On the other hand, the index for coal turned down 3.2 percent, after showing no change a month ago. Prices for natural gas fell more than in January.

The index for crude nonfood materials less energy turned up 0.1 percent, following a 2.2-percent decline in the previous month. Prices for nonferrous metal ores rose 5.1 percent in February, after falling 1.6 percent in January. The indexes for raw cotton, copper base scrap, and leaf tobacco also turned up, after decreasing in the prior month. Prices for cattle hides and aluminum base scrap fell less than a month ago. By contrast, the index for iron and steel scrap turned down 2.3 percent, following a gain of 0.1 percent in January. Prices for hardwood logs, bolts, and timber also fell, after rising in the previous month. The index for softwood logs, bolts, and timber decreased slightly more than a month ago.

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

Mining. The Producer Price Index for the net output of total domestic mining industries fell 4.4 percent in February, following a 5.9-percent decline in January. (Net output price indexes are not seasonally adjusted.) The index for the oil and gas extraction industry group fell 5.7 percent, following a 7.7-percent drop in the previous month. Prices for the metal mining industry group rose 3.7 percent, after declining 1.3 percent a month ago. Prices for the non-metallic mineral mining industry group increased 0.5 percent, after rising the same amount last month. By contrast, prices for the coal mining industry group declined 2.6 percent, following a 0.1-percent decrease in the prior month. In February, the Producer Price Index for the net output of total domestic mining industries stood at 74.5 (December 1984=100), 21.7 percent below its year-ago level.

Manufacturing. The Producer Price Index for the net output of total domestic manufacturing industries declined 0.1 percent in February, following a 0.6-percent decline in January. Prices for the petroleum refining and primary metal industry groups also fell less than the previous month. The tobacco manufactures, food and kindred products, and lumber and wood products industry groups turned up, after falling one month ago. The index for textile mill products rose, after showing no change in the previous month. Prices for transportation equipment and for rubber and plastic products industry groups showed no change, after falling in the prior month. The index for the measuring instruments industry group rose more than in the previous month. Conversely, prices for leather and leather products, machinery (except electrical), and for chemical and allied products industries fell, after rising in January. The indexes for the apparel and for printing and publishing industry groups rose less than in the prior month. In February, the Producer Price Index for the net output of the total domestic manufacturing sector stood at 126.2 (December 1984=100), 1.3 percent below its year-ago level.

Other. Among other industries in February, the indexes for the radio broadcasting, passenger car rental (without drivers), freight transportation arrangement, Mississippi river transportation of freight, scheduled air transportation, travel agencies, telephone communications (except radiotelephone), nonscheduled air transportation, railroads (line haul operating), and marine cargo handling industry groups rose, after falling in the previous month. Prices for the airport services, electric power utility services, natural gas utility services, and scrap and waste materials industry groups fell less than in January. The indexes for the courier services (except by air), architectural services, and other specialty hospitals (except psychiatric) industry groups rose more than in the prior month. Prices for the deep sea foreign transportation of freight, refined petroleum pipelines, refrigerated warehousing and storage, employment agencies, and psychiatric hospitals industry groups showed no change after falling in the previous month.

By contrast, the indexes for the home health care services and the deep sea domestic transportation of freight industry groups fell more than in January. Prices for the engineering services, legal services, help supply services, offices and clinics of doctors of medicine, cable and other pay television services, freight transportation on the Great Lakes- St. Lawrence Seaway, and operators and lessors of nonresidential buildings industry groups rose less than in the prior month. The indexes for the local trucking without storage, general warehousing and storage, general medical and surgical hospitals, accounting services, trucking (except local), air courier services, and prepackaged software industry groups fell, after rising in the previous month.

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