February 1999 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 declined 0.4 percent in February, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This decline followed increases of 0.5 percent in January and 0.4 percent in December. Prices received by producers of intermediate goods decreased 0.5 percent, following a 0.1- percent increase in the prior month. The crude goods index dropped 3.4 percent, after registering a 2.6-percent advance a month earlier. (See table A.)

1999 Jan. 0.5 1.6 1.8 -0.1 0.9 0.1 2.6 Feb. -0.4 -1.4 -1.0 0 0.5 -0.5 -3.4 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1998 have been revised to reflect the availability of late reports and corrections by respondents.

Among finished goods in February, prices for finished consumer foods and finished energy goods turned down, following increases in January. The index for finished goods other than foods and energy showed no change, after posting a 0.1-percent decline in the previous month, as an upturn in the index for capital equipment was offset by a decline in prices for finished consumer goods other than foods and energy.

Before seasonal adjustment, the Producer Price Index for Finished Goods fell 0.5 percent in February to 130.9 (1982=100). Over the past 12 months, finished consumer foods prices rose 0.2 percent, the finished energy goods index dropped 7.0 percent, and prices for finished goods other than foods and energy advanced 2.2 percent. Prices received by domestic producers of intermediate goods decreased 2.7 percent for the 12 months ended in February, and the crude goods index fell 12.2 percent during the same period.

Finished goods

The finished consumer foods index declined 1.4 percent in February, following a 1.6-percent increase a month ago. Prices for dairy products fell 3.0 percent, after a 3.4-percent advance last month. The indexes for pork, eggs for fresh use, and beef and veal also turned down, after rising in the previous month. Fresh and dry vegetable prices declined faster than last month. The citrus fruit index fell 14.1 percent, following a 64.0- percent jump last month. By contrast, soft drink prices turned up 0.6 percent, following a 0.8-percent decline a month ago. The processed turkey index fell less than in the prior month. Roasted coffee prices posted no change, after falling 1.3 percent last month.

1999 Jan. 1.1 1.8 -0.2 -2.4 5.1 0.6 0.2 -10.6 Feb. -2.0 -1.7 -0.2 -2.7 -2.8 -7.4 1.1 -12.2 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1998 have been revised to reflect the availability of late reports and corrections by respondents.

The index for finished energy goods fell 1.0 percent in February, following a 1.8-percent advance in January. Price declines for residential electric power, finished lubricants, residential natural gas, and home heating oil more than offset price increases for gasoline.

Capital equipment prices advanced 0.1 percent in February, following a 0.1-percent decline a month ago. The light motor truck index increased 0.4 percent, after rising 0.1 percent in January. Prices for communication and related equipment and commercial furniture also rose more than in the previous month. The construction machinery and equipment index turned up from last month. Price declines for electronic computers were slower than last month. By contrast, the civilian aircraft index showed no change, following a 0.2-percent rise in January. The indexes for printing trades machinery and paper industries machinery turned down from the prior month.

The index for finished consumer goods other than foods and energy decreased 0.1 percent in February, the same rate as in January. Falling prices for passenger cars, sanitary papers and health products, book publishing, and platinum and karat gold jewelry slightly outweighed rising prices for prescription drugs, light motor trucks, and household appliances.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components turned down 0.5 percent in February, seasonally adjusted, after registering a 0.1-percent rise in January. The indexes for intermediate energy goods and intermediate foods and feeds also fell, following increases a month ago. Nondurable manufacturing material prices fell more than in the prior month. By contrast, prices for materials and components for construction rose 0.2 percent, following a 0.1-percent increase last month. The durable manufacturing materials index fell less than in the previous month. (See table B.)

Excluding foods and energy, the index for intermediate materials fell 0.2 percent in February, the same as in the previous month. February's decline in the intermediate core index represents the tenth consecutive monthly decrease. Prices for intermediate materials other than foods and energy are 1.7 percent lower than 12 months ago.

The intermediate energy goods index fell 1.7 percent in February, after posting a 1.8-percent increase in January. Jet fuel prices declined 2.7 percent, after advancing 7.5 percent in the previous month. The indexes for commercial and industrial electric power turned down, after increasing a month earlier. Prices for residual fuel fell more than a month ago. The gasoline index rose less than in January. On the other hand, the index for natural gas to electric utilities rose, after falling last month. Liquefied petroleum gas prices declined more slowly in February than in the prior month.

Intermediate foods and feeds prices turned down 2.0 percent in February, following a 1.1-percent advance in January. Pork prices fell 6.3 percent, after an 18.3-percent increase in the previous month. The indexes for beef and veal, prepared animal feeds, crude vegetable oils, and for natural, processed, and imitation cheese also turned down, following an advance in the prior month. Prices for fluid milk products rose less than a month ago. By contrast, the index for refined sugar turned up 1.4 percent, after falling 1.0 percent last month. Price increases accelerated for snack chips.

Nondurable manufacturing materials prices moved down 0.8 percent in February, after posting a 0.1-percent decline in January. The index for medicinal and botanical chemicals fell 1.6 percent, following a 2.9-percent rise in the previous month. Prices for paperboard and woodpulp also turned down, after advancing in the prior month. The inedible fats and oils index fell, after showing no change a month ago. Conversely, prices for primary basic organic chemicals turned up 1.6 percent, following a 1.4-percent decrease in the previous month. The indexes for synthetic fibers and phosphates also rose, after falling in January.

In February, the index for materials and components for construction increased 0.2 percent, following a 0.1-percent rise in January. This was the third consecutive increase for this index. Rising prices for softwood lumber, softwood plywood, gypsum products, millwork, and plastic construction products outweighed declining prices for nonferrous wire and cable, wiring devices, plumbing fixtures and brass fittings, and asphalt felts and coatings.

The durable manufacturing materials index decreased 0.5 percent in February, after registering a 0.6-percent decrease in January. February's decline was the sixth consecutive decrease, leaving the durable manufacturing materials index 5.1 percent lower than last year. In February, price declines for steel mill products, primary nonferrous metals, and aluminum mill shapes outweighed price increases for softwood plywood, building paper and board, and prepared paint.

Crude goods

The Producer Price Index for Crude Materials for Further Processing declined 3.4 percent, seasonally adjusted, after registering a 2.6-percent advance in January. Prices for crude foodstuffs and feedstuffs and crude energy materials fell, following increases in the prior month. By contrast, the index for basic industrial materials rose more than a month ago. (See table B.)

Crude foodstuffs and feedstuffs prices dropped 2.8 percent in February, after posting a 5.1-percent gain in January. The slaughter hogs index declined 1.2 percent, following a 188.6-percent advance in the previous month. Prices for fluid milk, soybeans, and fresh and dry vegetables fell more than a month earlier. The indexes for slaughter cattle and for fresh fruits and melons rose less than last month. Prices for wheat and unprocessed finfish decreased, after increasing a month ago. On the other hand, the slaughter broilers and fryers index advanced 2.4 percent, following a 5.6-percent decline in January. Slaughter turkey prices also rose, after falling in the prior month. The corn index fell less than a month earlier.

Crude energy material prices fell 7.4 percent in February, following a 0.6-percent rise in January. The crude petroleum index dropped 13.8 percent, after registering a 16.5-percent gain last month. Coal prices also turned down, following an increase a month ago. Conversely, the index for natural gas declined 5.0 percent, after a 7.0-percent decline in the previous month.

The basic industrial materials index increased 1.1 percent in February, after posting a 0.2-percent rise in January. Prices for gold ores advanced 3.1 percent, following a 3.3-percent decline a month ago. The wastepaper index rose more than in the prior month. Prices for aluminum base scrap, softwood logs, bolts, and timber, phosphates, and for construction sand, gravel, and crushed stone turned up, after falling a month earlier. By contrast, the iron and steel scrap index increased 2.9 percent, following a 6.2-percent gain in January. Prices for raw cotton and for hardwood logs, bolts, and timber fell more than last month.

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

Mining. The Producer Price Index for the Net Output of Total Mining Industries fell 4.5 percent in February, following a 0.5-percent decline in January. (Net output price indexes are not seasonally adjusted.) In February, prices for the oil and gas extraction industry group moved down 5.8 percent, after showing a 1.0-percent decrease in the prior month. The index for the coal mining industry group turned down 2.9 percent, after increasing 1.4 percent in January. By contrast, the index for the metal mining industry group turned up 1.6 percent, after falling 1.3 percent in the previous month. The non-metallic mining industry group index moved up 0.2 percent in February, the same rate as last month. In February, the Producer Price Index for the Net Output of Total Mining Industries stood at 62.1 (December 1984=100), 15.6 percent below its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries decreased 0.2 percent in February, after increasing 0.4 percent in January. The index for the petroleum refining and related products industry group declined 4.6 percent, following a 5.4- percent increase in January. The index for food and kindred products turned down, after rising as much the month before. Price increases for the printing and publishing industry group slowed to 0.2 percent in February from 0.6 percent in January. The indexes for the electrical and electronic machinery and equipment industry group and the fabricated metal products industry group fell, after rising in the prior month. By contrast, price increases accelerated from January to February for the lumber and wood products, the non-metallic mineral products, and the furniture and fixtures industry groups. In February, the Producer Price Index for the Net Output of Total Manufacturing Industries stood at 126.0 (December 1984=100), 0.1 percent below its year-ago level.

Other. Among other industries, prices decreased more in February than in January for telephone communications (except radiotelephone) and freight transportation arrangement. The index for United States Postal Service was unchanged, after increasing in the previous month. Price increases slowed from January to February for offices and clinics of doctors of medicine, property and casualty insurance, cable and other pay television services, hotels and motels, trucking (except local), general medical and surgical hospitals, skilled and intermediate care facilities, scheduled air transportation, and advertising agencies. Prices turned down after rising a month earlier for real estate agents and managers, travel agencies, prepackaged software, deep sea foreign transportation of freight, passenger car rental (without drivers), and help supply services. Prices declined after showing no change a month earlier for truck rental and leasing (without drivers) and railroad line-haul operations.

By contrast, the index for radio broadcasting increased 1.5 percent in February, after falling 2.3 percent in January. Prices for home health care services, crude petroleum pipelines, airports and airport services, and Mississippi River transportation turned up, after decreasing in the prior month. Price increases accelerated from January to February for life insurance carriers, architectural services, and engineering services.

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. Table 1. Producer price indexes and percent changes by stage of processing (1982=100)

1/ Comprehensive relative importance figures are initially computed 3/ Includes crude petroleum. after the publication of December indexes and are recalculated 4/ Excludes crude petroleum. after final December indexes are available. The first-published 5/ Percent of total finished goods. and final December relative importances initially appear, 6/ Percent of total intermediate materials. respectively, in the release tables containing January and May data. 7/ Formerly titled "Crude materials for 2/ The indexes for October 1998 have been recalculated to incorporate further processing, excluding crude late reports and corrections by respondents. All indexes foodstuffs and feedstuffs, plant and are subject to revision 4 months after original publication. animal fibers, oilseeds, and leaf tobacco." 8/ Percent of total crude materials. Table 2. Producer price indexes and percent changes for selected commodity groupings by stage of processing (1982=100 unless otherwise indicated)

See footnotes at end of table. Table 2. Producer price indexes and percent changes for selected commodity groupings by stage of processing - Continued (1982=100 unless otherwise indicated)

1/ The indexes for October 1998 have been recalculated to incorporate 2/ Not seasonally adjusted. late reports and corrections by respondents. All indexes are 3/ Not available. subject to revision 4 months after original publication. Table 3. Producer price indexes for selected commodity groupings (1982=100 unless otherwise indicated)

1/ Data for October 1998 have been revised to reflect the availability of late reports and corrections by respondents. All data are subject to revision 4 months after original publication.

2/ Prices of some items in this grouping are lagged 1 month. Table 4. Producer price indexes for the net output of major industry groups, not seasonally adjusted

1/ Indexes in this table are derived from the net-output-weighted industry price indexes. Because of differences in coverage and aggregation methodology, they will generally not match the movements of similarly-titled indexes which are derived from traditional commodity groupings. 2/ The indexes for October 1998 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication. 3/ Not available. Table 5. Producer price indexes by stage of processing, seasonally adjusted (1982=100)

1/ All seasonally adjusted indexes are subject to change up to 5 years after original publication due to the recalculation of seasonal factors each January. The indexes for October 1998 have been recalculated to incorporate late reports and corrections by respondents. 2/ Includes crude petroleum. 3/ Excludes crude petroleum.