April 1999 Producer Price Index

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The Producer Price Index for Finished Goods advanced 0.5 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This rise follows a 0.2-percent increase in March and a 0.4-percent decline in February. Excluding the influence of the 29.1-percent rise in gasoline prices, the finished goods index declined 0.1 percent in April. The index for finished goods other than foods and energy increased 0.1 percent, after showing no change a month earlier. Prices received by producers of intermediate goods advanced 0.6 percent, after increasing 0.3 percent in the previous month. The crude goods index gained 1.3 percent, following a 1.0-percent rise in March. (See table A.)

Among finished goods in April, the index for finished energy goods rose more than in the previous month. By contrast, prices for finished consumer foods declined, following an increase in March. The index for finished consumer goods other than foods and energy showed no change, after edging up a month ago. Capital equipment prices showed no change for the second consecutive month.

Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.5 percent in April to stand at 131.8 (1982=100). From April 1998 through April 1999, the index for finished goods advanced 1.1 percent. During the same period, prices for finished goods other than foods and energy increased 1.7 percent, the index for finished energy goods rose 1.5 percent, and prices for finished consumer foods declined 0.4 percent. Prices received by producers of intermediate goods declined 1.4 percent for the 12 months ended in April, and the index for crude goods dropped 9.9 percent during the same period.

Finished goods

Prices for finished energy goods advanced 5.1 percent in April, after registering a 1.2-percent gain in March. The April increase for finished energy goods represents the largest monthly increase since a 7.5-percent rise in October 1990. The main cause of this month's acceleration in energy prices was the record 29.1-percent advance in gasoline prices, following a more modest 3.6-percent rise last month. The index for home heating oil also rose more than in the prior month. Prices for residential natural gas fell less than a month earlier. By contrast, the finished lubricants index declined 4.6 percent in April, after a 9.7-percent advance in March. Residential electric power prices decreased, following an increase a month ago.

The finished consumer foods index declined 0.9 percent in April, after posting a 0.4-percent gain in March. Dairy product prices decreased 7.1 percent, following a 1.4-percent drop in the previous month. The indexes for finfish and shellfish, eggs for fresh use, and pork fell, after rising a month earlier. Fresh and dry vegetable prices rose less than in the prior month. The index for processed young chickens fell more than last month. On the other hand, prices for fresh fruits and melons advanced 0.9 percent, following a 5.5-percent decline in March. The bakery products index also rose, after falling a month ago.

The index for finished consumer goods other than foods and energy showed no change in April, after registering a 0.1-percent gain a month earlier. Advancing prices for passenger cars, light motor trucks, passenger car radial tires, women's apparel, and prescription drugs were offset by declining prices for toilet tissue and stock; soft surface floor coverings; cosmetics and other toilet preparations; girls', children's, and infants' apparel; and men's footwear, excluding athletic.

The capital equipment index showed no change for the past two months. In April, price increases for light motor trucks, construction machinery and equipment, agricultural machinery and equipment, truck trailers, and for pumps, compressors, and equipment were counteracted by price declines for electronic computers, civilian aircraft, line transmission equipment, nonwood furniture and store fixtures, and x-ray and electromedical equipment.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components rose 0.6 percent in April, seasonally adjusted, after registering a 0.3-percent increase in March. The April increase was the largest one-month rise since a 0.6-increase was posted for April 1995. The main cause for the acceleration in intermediate goods prices was faster price increases for intermediate energy goods. By contrast, price increases for construction materials and components slowed from March's rate. The index for intermediate foods and feeds fell more than a month ago. The nondurable manufacturing materials index advanced 0.2 percent for the second consecutive month. Prices for durable manufacturing materials declined 0.2 percent, the same as in the previous month. Excluding foods and energy, the index for intermediate materials rose 0.2 percent, following a 0.1-percent rise in the previous month. (See table B.)

The intermediate energy goods index advanced 4.5 percent, after posting a 2.2-percent increase in March. The last larger one-month increase in intermediate energy goods was a 7.5-percent gain in October 1990. In April, a 29.1-percent jump in gasoline prices, following a 3.6- percent rise in March, led the acceleration in intermediate energy prices. The indexes for jet fuels and diesel fuel also rose more than in the previous month. On the other hand, the commercial electric power index turned down 1.5 percent, following a 0.4-percent gain a month ago. Prices for finished lubricants also fell, after rising in March. The industrial electric power index fell more than in the prior month. Prices for residual fuels rose less than in the previous month.

Prices for materials and components for construction increased 0.1 percent in April, after a 0.3-percent rise in the prior month. This makes the fourth consecutive monthly increase in the index for construction materials. In April, rising prices for millwork, concrete products, plastic construction products, asphalt felts and coatings, prepared paint and major appliances slightly outweighed falling prices for plywood, nonferrous wire and cable, softwood lumber, and for hot rolled bars, plates, and structural shapes.

The index for intermediate foods and feeds declined 1.8 percent, following a 1.6-percent decrease in March. Fluid milk prices dropped 14.6 percent, after a 1.1-percent decline in the prior month. The index for young chickens also fell more than in April. Prices for boxed beef and pork turned down, following an increase in the prior month. The index for refined sugar showed no change, after advancing a month ago. By contrast, prices for prepared animal feeds turned up 0.3 percent, after falling 2.8 percent in the prior month. The indexes for natural, processed, and imitation cheese and for crude vegetable oils also rose after declining in March.

The index for nondurable manufacturing materials increased 0.2 percent, following a 0.2-percent gain in March. Rising prices for paperboard, thermoplastic resins, primary organic chemicals, writing and printing papers, embroideries and lace goods, and fertilizer materials outweighed falling prices for basic inorganic chemicals, gray fabrics, newsprint, broadwoven finished fabrics, and stemmed and redried tobacco.

The durable manufacturing materials index decreased 0.2 percent in April, after posting a 0.2-percent decline in March. Falling prices for steel mill products, softwood plywood, cement, nonferrous wire and cable, nonferrous mill shapes, and flat glass more than offset rising prices for plastic resins and materials, building paper and board, and prepared paint.

Crude goods

The Producer Price Index for Crude Materials for Further Processing advanced 1.3 percent in April, seasonally adjusted, following a 1.0-percent increase in March. Prices for crude energy materials also rose more than in the previous month. By contrast, the indexes for crude foodstuffs and feedstuffs and basic industrial materials fell more than a month ago. (See table B.)

The index for crude energy materials rose 8.5 percent in April, after advancing 6.1 percent in March. This acceleration was led by an upturn in natural gas prices which rose 1.7 percent, following a 1.7-percent decline in the prior month. The crude petroleum index continued upward at 27.3 percent, after advancing 27.1 percent in the previous month. Crude petroleum prices rose 11.3 percent for the twelve months ended in April 1999. The coal index somewhat offset the acceleration for crude energy materials by rising less than in March.

Prices for crude foodstuffs and feedstuffs dropped 2.5 percent in April, following a 1.3-percent loss in March. The index for bulk fluid milk also fell at a faster rate than last month. Slaughter cattle prices turned down 1.0 percent, after rising 4.6 percent in the prior month. Prices for unprocessed finfish and slaughter turkeys turned down, following increases in the previous month. The Irish potatoes for processing index showed no change, after advancing a month ago. On the other hand, corn prices fell 0.9 percent in April, following a 7.2-percent decrease in March. April prices for wheat and for slaughter broilers and fryers also declined less than a month ago. The indexes for soybeans and slaughter hogs turned up, after falling in the previous month.

The index for basic industrial materials decreased 1.1 percent in April, following a 0.8-percent fall in March. This faster rate of decline was led by a downturn in prices for leaf tobacco, which dropped 16.4- percent in April following a 1.8-percent gain last month. Prices for raw cotton, gold ores, softwood logs, and wastepaper also turned down, after rising in the prior month. The copper base scrap index rose less than a month ago. On the other hand, iron and steel scrap prices increased 0.3 percent in April, following a 4.4-percent drop in March. The indexes for aluminum base scrap and cattle hides also turned up, after declining in the previous month. Prices for copper ores fell less than in March.

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

Mining. The Producer Price Index for the net output of total domestic mining industries advanced 5.3 percent in April, following a 4.0-percent increase in March. (Net output price indexes are not seasonally adjusted.) Price increases for the crude petroleum and natural gas industries accelerated from 6.7 percent in March to 9.2 percent in April. By contrast, prices for the coal mining and nonmetallic minerals mining industry groups slowed from March to April. The index for the metal mining industry group fell more than in the previous month. In April, the Producer Price Index for the net output of total domestic mining industries stood at 68.0 (December 1984=100), 8.2 percent below its year-ago level.

Manufacturing. The Producer Price Index for the net output of total domestic manufacturing industries advanced 1.0 percent in April, after increasing 0.2 percent in March. Most of this acceleration was due to the index for the petroleum refining industry group which jumped 23.6 percent, after rising 5.7 percent in the prior month. Among other manufacturing industries in April, the largest increases were for rubber products and paper products. However, prices declined 1.0 percent for food and kindred products. In April, the Producer Price Index for the net output of the total domestic manufacturing industries stood at 127.4 (December 1984=100), 1.0 percent higher than its year-ago level.

Other. Among other industries in March, increases were registered for real estate agents and managers, passenger car rental (without drivers), scheduled air transportation, hotels and motels, and radio broadcasting. By contrast, price declines occurred for life insurance carriers, truck rental and leasing (without drivers), and deep sea foreign transportation of freight.

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