April 1998 Producer Price Index

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The Producer Price Index for Finished Goods rose 0.2 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This increase follows declines in each of the last five months, including decreases of 0.3 percent in March and 0.1 percent in February. The index for finished goods other than foods and energy advanced 0.2 percent in April, after showing no change a month ago. Prices received by producers of intermediate goods showed no change in April, following a 0.5-percent drop in the prior month. The crude goods index rose 1.0 percent, after a 1.6-percent decline in March. (See Table A.)

Among finished goods in April, price increases for finished consumer goods other than foods and energy, for finished consumer foods, and for capital equipment more than offset the small price decrease for finished energy goods, which declined 0.1 percent in April, after a 1.9-percent drop in March.

Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.2 percent in April to stand at 130.0 (1982=100). From April 1997 to April 1998, the Finished Goods Price Index decreased 1.2 percent. Over the past 12 months, prices for finished energy goods declined 8.7 percent, and the index for finished consumer foods fell 0.5 percent. By contrast, prices for finished goods other than foods and energy rose 0.2 percent. Prices received by domestic producers of intermediate goods declined 1.6 percent for the 12 months ended in April, and the index for crude goods fell 7.3 percent during the same period.

Finished goods

The index for finished consumer goods other than foods and energy advanced 0.3 percent in April, following a 0.1-percent increase in March. Prices for cigarettes turned up 3.6 percent, after a 0.1-percent decline in the prior month. The indexes for book publishing, over-the-counter drugs, and men's and boys' apparel also rose, after falling in the previous month. Prices for women's apparel and passenger cars rose more than a month ago. Conversely, the index for sanitary papers and health products fell 0.5 percent, after rising 0.5 percent in March. Prices for alcoholic beverages and periodical circulation also fell, after rising in the prior month.

Prices for finished consumer foods turned up 0.4 percent in April, following a 0.4-percent decrease a month ago. The index for beef and veal rose 4.7 percent, after falling 4.7 percent in the previous month. Prices for pork, fresh fruits and melons, and for finfish and shellfish also turned up after falling. The index for fresh and dry vegetables rose more than a month ago. Prices for dairy products fell less than in the prior month. On the other hand, the index for eggs for fresh use turned down 13.6 percent, after rising 13.4 percent in March. Prices for soft drinks and processed young chickens rose less than a month ago.

The index for capital equipment increased 0.1 percent, after showing no change in March. In April, rising prices for light motor trucks, civilian aircraft, transformers, and heavy motor trucks outweighed falling prices for electronic computers, commercial furniture, and metal cutting machine tools.

The index for finished energy goods declined 0.1 percent, following a 1.9-percent drop in March as well as declines in each of the five previous months. Prices for gasoline fell 0.6 percent in April, after a 7.6 percent decline in the prior month. Prices for home heating oil and residential electric power rose, after falling a month ago. By contrast, prices for residential natural gas rose 0.1 percent, following a 1.8-percent advance in the previous month. The index for finished lubricants also rose less than a month ago.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components showed no change in April, seasonally adjusted, after declining 0.5 percent in March. Prices for intermediate energy goods rose, after falling in the previous month. The index for materials for durable manufacturing was unchanged in April, after declining a month ago. Prices for materials for nondurable manufacturing and for intermediate foods and feeds fell less than in the prior month. The index for materials and components for construction increased, after showing no change a month earlier. Excluding foods and energy, the index for intermediate materials was unchanged, following a 0.1-percent decrease last month. (See Table B.)

The index for intermediate energy materials advanced 0.5 percent, following a 2.4-percent decline in March. Prices for residual fuels increased 14.6 percent, after decreasing 17.3 percent in the previous month. The indexes for No. 2 diesel fuel, jet fuels, and for commercial electric power also rose, after falling a month ago. Prices for gasoline fell less than in the prior month. By contrast, the index for natural gas to electric utilities declined 10.3 percent, following a 0.1-percent advance a month earlier. Prices for coke oven products also turned down after rising in March. The indexes for liquefied petroleum gas and industrial natural gas fell more than in the prior month.

The index for durable manufacturing materials was unchanged, following a 0.5-percent decline in March. Prices for building paper and board increased 2.4 percent, after a 3.4-percent decrease a month ago. The indexes for plywood, silver, gold, and for hot rolled bars, plates, and structural shapes turned up, after falling in the previous month. Prices for prepared paint and cement rose more than in the prior month. Conversely, the index for aluminum mill shapes declined 1.2 percent, following a 0.5-percent decline in March. Prices for hot rolled sheet and strip and for cold rolled sheet and strip also fell more than a month ago. The index for copper cathode and refined copper rose less than in March.

The index for nondurable manufacturing materials declined 0.2 percent, following a 0.5-percent decline in March. Prices for primary basic organic chemicals decreased 2.6 percent, after a 6.3-percent decline a month ago. The indexes for plastic resins and materials and nitrogenates also fell less than in the previous month. Prices for gray fabrics, synthetic rubber, and basic inorganic chemicals turned up, after falling in the prior month. By contrast, the index for paperboard declined 1.0 percent, following a 0.8-percent increase a month earlier. Prices for paper, intermediate basic organic chemicals, and for inedible fats and oils also turned down, after rising last month. The index for woodpulp declined more than in March.

The index for intermediate foods and feeds declined 0.7 percent in April, following a 1.6-percent decline in March. Price declines for prepared animal feeds, confectionery materials, liquid milk products, and flour outweighed price increases for beef and veal, pork, and crude vegetable oils.

The index for materials and components for construction advanced 0.2 percent, after showing no change in March. Prices for plywood increased 0.7 percent, following a 1.4-percent decrease in the previous month. The indexes for switchgear and switchboard equipment, air conditioning and refrigeration equipment, millwork, and wiring devices also rose, after falling a month earlier. Prices for cement increased more than last month. By contrast, the index for plastic construction products declined 0.2 percent, following a 0.2-percent advance in March. Prices for fabricated structural metal products and gypsum products were unchanged, after rising in the prior month. The index for nonferrous wire and cable rose less than a month ago.

Crude goods

The Producer Price Index for Crude Materials for Further Processing increased 1.0 percent in April, seasonally adjusted, following a 1.6- percent decline in March. Prices for crude energy materials turned up, after falling in the prior month. The index for basic industrial materials fell less than in March. However, prices for crude foodstuffs and feedstuffs rose less than a month earlier. (See table B.)

The index for crude energy materials rose 3.5 percent in April, after decreasing 4.3 percent in March. The index for crude petroleum turned up 6.4 percent, after declining 17.1 percent in the previous month. Price increases for natural gas accelerated from 1.1 percent in March to 5.2 percent in April. By contrast, prices for coal turned down 2.7 percent, after rising 1.3 percent a month ago.

The index for crude foodstuffs and feedstuffs rose 0.3 percent in April, after advancing 0.7 percent in March. Prices increases for slaughter livestock, slaughter poultry, fresh fruits and melons, and fresh and dry vegetables outweighed price declines for corn, wheat, and soybeans.

The index for crude nonfood materials less energy moved down 0.9 percent in April, following a 1.9 percent decrease in March. The index for iron and steel scrap fell 1.2 percent, after declining 4.1 percent in the previous month. Prices for leaf tobacco and copper ores also fell less than in March. The indexes for cattle hides and gold ores turned up, after falling in the prior month. Prices for copper base scrap rose more than in March. Conversely, the index for raw cotton declined 10.2 percent, after a 3.6-percent decrease in the previous month. Prices for wastepaper also fell 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 rose 2.2 percent in April, following a 3.4-percent decline in March. (Net output price indexes are not seasonally adjusted.) The index for the oil and gas extraction industry group turned up 3.3 percent, following a 4.8-percent drop in the previous month. Similarly, prices for the metal mining industry group increased 1.9 percent in April, after falling 1.6 percent in the prior month. The index for the nonmetallic minerals mining group rose 0.5 percent, following a 0.2-percent increase a month ago. By contrast, prices for the coal mining industry group turned down 1.9 percent, after rising 0.7 percent in March. In April, the Producer Price Index for the net output of total domestic mining industries stood at 73.6 (December 1984=100), 5.2 percent below its year- ago level.

Manufacturing. The Producer Price Index for the net output of total domestic manufacturing industries rose 0.2 percent in April, following a 0.4-percent decline in March. Prices for the petroleum refining and related products group turned up 3.3 percent in April, after dropping 6.7 percent in the previous month. The indexes for the lumber and wood products and for the printing and publishing industry groups also rose, following a decline in the prior month. Prices for the tobacco manufactures and for the nonmetallic mineral products industry groups increased in April, after showing no change in March. The indexes for the food and kindred products and for the chemicals and allied products industry groups both declined by 0.1 percent, following larger decreases a month ago. On the other hand, prices for the industry group for paper and allied products turned down 0.4 percent, following a 0.4 percent increase in the previous month. The index for the furniture and fixtures industry group also fell, after rising in the prior month. Prices for the electrical and electronic machinery and for the rubber and plastic products industry groups moved down in April, after both showed no change in March. The indexes for the fabricated metal products and for the apparel and kindred products industry groups both showed no change, following increases a month ago. In April, the Producer Price Index for the net output of the total domestic manufacturing sector stood at 126.0 (December 1984=100), 1.3 percent below its year-ago level.

Other. Among other industries in April, prices for operators and lessors of nonresidential buildings increased 0.3 percent, after rising 1.1 percent in the previous month. The indexes for scheduled air transportation, radio broadcasting, line-haul operating railroads, hotels and motels, and for airports and airport services also rose less than a month ago. Prices for telephone communications turned down 0.6 percent, following a 0.2-percent increase in the prior month. The indexes for offices and clinics of doctors of medicine, real estate agents and managers, deep sea foreign transportation of freight, and for deep sea domestic transportation of freight also fell, after rising in March. The indexes for home health care services and for engineering design, analysis, and consulting services both showed no change, after increasing in the previous month. By contrast, prices for passenger car rental turned up 1.0 percent, after falling 3.2 percent in March. The indexes for local trucking without storage, and for architectural design, analysis, and consulting services also rose, after decreasing in the prior month. Prices for freight transportation arrangement, Mississippi River transportation of freight, and prepackaged software fell less than a month earlier. The indexes for accounting, auditing, and bookkeeping services; travel agencies; skilled and intermediate care facilities; advertising agencies; and, courier services, except by air, rose more than in March. Prices for medical laboratories moved up, after showing no change a month ago. The index for marine cargo handling showed no change, following a decline in the previous month.

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