February 2000 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 rose 1.0 percent in February, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This followed no change in January and a 0.1-percent increase in December. Prices for finished goods other than foods and energy advanced 0.3 percent, following a 0.2-percent decrease in January. The index for intermediate goods increased 0.8 percent, after rising 0.4 percent in the prior month. The crude goods index gained 4.2 percent, following a 2.7-percent rise a month earlier. (See table A.)

2000 Jan. 0 .1 .7 -.2 2.5 .4 2.7 Feb. 1.0 .4 5.2 .3 4.0 .8 4.2 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1999 have been revised to reflect the availability of late reports and corrections by respondents.

The majority of February's increase in prices for finished goods can be traced to a 5.2-percent rise for finished energy goods, the largest one- month gain since a 7.5-percent jump in October 1990. The 0.3-percent February increase in prices for finished goods other than foods and energy was primarily due to a 6.3-percent rise in cigarette prices. (Excluding cigarettes, the index for finished goods other than foods and energy would have shown no change in February. The overall finished goods index would have risen 0.9 percent excluding cigarettes.) Prices for finished consumer foods rose more than in the prior month.

Before seasonal adjustment, the Producer Price Index for Finished Goods increased 1.0 percent to stand at 136.0 (1982=100). From February 1999 to February 2000, the finished goods price index increased 4.0 percent. Over the same period, prices for finished energy goods advanced 24.7 percent, finished consumer foods rose 1.3 percent, and finished goods other than foods and energy rose 1.0 percent. Prices received by domestic producers of intermediate goods moved up 5.3 percent for the 12 months ended in February 2000, and the index for crude goods registered a 26.1- percent gain in the same period.

Finished goods

Prices for finished energy goods advanced 5.2 percent in February, after posting a 0.7-percent rise in January. The gasoline index increased 12.9 percent, following a 3.0-percent rise in the prior month. Home heating oil prices advanced 30.6 percent, after showing a 6.2-percent increase a month earlier. Prices for liquefied petroleum gas, residential natural gas, and finished lubricants turned up, after falling in January.

2000 Jan. 0 .8 .3 4.1 .7 4.4 3.2 18.0 Feb. .6 4.2 .2 5.3 .7 10.0 -.2 26.1 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1999 have been revised to reflect the availability of late reports and corrections by respondents.

The index for finished consumer goods other than foods and energy rose 0.5 percent in February, following a 0.4-percent decline in January. Prices for tobacco products turned up 5.6 percent, after decreasing 4.2 percent last month. The indexes for periodical circulation, women's apparel, and for men's and boys' apparel also rose, following declines in the prior month. Price decreases for light motor trucks slowed from 0.8 percent in January to 0.1 percent in February. By contrast, the index for passenger cars fell 1.2 percent, after edging up 0.1 percent a month earlier. Prices for passenger car tires declined 2.9 percent, following no change a month earlier.

The index for finished consumer foods increased 0.4 percent in February, after edging up 0.1 in January. Soft drink prices rose 2.1 percent, following a 0.6-percent decrease last month. The indexes for fresh fruits and melons and for processed fruits and vegetables also turned up, after falling a month earlier. Price increases accelerated for finfish and shellfish, eggs for fresh use, and bakery products. The index for fresh and dry vegetables fell less than in January. By contrast, prices for dairy products fell 1.4 percent in February, after rising 1.6 percent in January. Beef and veal prices fell, following an increase in the prior month. The index for processed young chickens fell more than in January. Prices for roasted coffee edged down, after increasing a month earlier. Price increases for pork slowed to 4.5 percent in February from 6.2 percent in January.

The capital equipment index was unchanged in February, after edging up 0.1 percent in January. Price increases for civilian aircraft, industrial material handling equipment, and commercial furniture offset price declines for electronic computers, communication and related equipment, pumps and compressors, light motor trucks, and construction machinery and equipment.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 0.8 percent in February, after posting a 0.4-percent gain a month ago. February's increase is the largest one-month rise since a 1.1-percent jump in January 1995. The intermediate energy goods index increased more than last month. Prices for intermediate foods and feeds increased, after showing no change in the prior month. By contrast, the index for materials and components for construction rose less than a month ago. Prices for durable and nondurable manufacturing materials advanced at rates similar to January's. Excluding foods and energy, the index for intermediate materials gained 0.2 percent, following a 0.3-percent rise in January. (See table B.)

Prices for intermediate energy goods jumped 4.2 percent in February, after registering a 0.8-percent increase in January. The gasoline index advanced 12.9 percent, following a 3.0-percent rise in the previous month. Diesel fuel prices also rose more than a month earlier. The indexes for industrial electric power, commercial electric power, and liquefied petroleum gas moved up, after falling in the prior month. On the other hand, prices for natural gas to electric utilities gained 3.5 percent, following a 10.1-percent increase in January. The indexes for jet fuels and commercial natural gas also rose less than a month ago.

Prices for intermediate foods and feeds advanced 0.6 percent in February, after posting no change in January. The index for prepared animal feeds turned up 2.4 percent, following a 0.3-percent drop last month. Prices for bulk condensed and evaporated milk products also rose, after declining a month earlier. The indexes for crude vegetable oils and butter fell less than a month ago. By contrast, the beef and veal index decreased 1.4 percent in February, following a 2.5-percent gain in January. Prices for fluid milk products and confectionery materials fell, after rising in the prior month.

The index for materials and components for construction advanced 0.3 percent in February, following a 0.4-percent increase a month earlier. Rising prices for nonferrous wire and cable, fabricated structural metal products, hot rolled sheet and strip, steel wire, gypsum products, air conditioning and refrigeration equipment, and softwood lumber outweighed falling prices for millwork, wiring devices, and for plumbing fixtures and brass fittings.

The index for durable manufacturing materials gained 0.8 percent in February, the same rate of increase as in January. Prices for steel mill products, aluminum mill shapes, primary aluminum, gold, prepared paint, and flat glass increased in February. These advances more than offset declining prices for copper cathode and refined copper, cement, and zinc.

In February, the index for nondurable manufacturing materials increased at a 0.5-percent rate for the third consecutive month. Rising prices for primary basic organic chemicals, paperboard, paper, basic inorganic chemicals, and synthetic fibers outweighed falling prices for plastic resins and materials, inedible fats and oils, and other basic organic chemicals.

Crude goods

The Producer Price Index for Crude Materials for Further Processing increased 4.2 percent in February, following a 2.7-percent rise in January. Prices for crude energy materials advanced more than in the prior month. On the other hand, basic industrial material prices turned down, after rising a month ago. The crude foodstuffs and feedstuffs index rose, following a similar increase in the previous month. (See table B.)

Prices for crude energy materials gained 10.0 percent in February, after posting a 4.4-percent increase in January. Leading the advance, the crude petroleum index jumped 16.6 percent, after showing no change a month earlier. By contrast, the coal index turned down 2.6 percent, following a 2.3-percent increase in the previous month. Natural gas prices rose at the same rate as in January.

The index for crude nonfood materials less energy fell 0.2 percent in February, after rising 3.2 percent in January. Wastepaper prices declined 0.9 percent, following an 18.4-percent advance in the prior month. The iron and steel scrap index also fell, after increasing in the previous month. The indexes for raw cotton, aluminum base scrap, copper base scrap, and for softwood logs, bolts, and timber rose less than a month ago. By contrast, gold ore prices posted a 5.4-percent gain, following a 0.6- percent rise in the prior month. Prices for construction sand, gravel, and crushed stone and for leaf tobacco rose, after falling in the previous month.

The index for crude foodstuffs and feedstuffs increased 0.7 percent in both January and February. Rising prices for corn, soybeans, wheat, unprocessed finfish, alfalfa hay, and for fresh fruits and melons more than offset falling prices for slaughter broilers and fryers, slaughter cattle, fresh vegetables (except potatoes), slaughter hogs, and slaughter turkeys.

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

Mining. The Producer Index for the Net Output of Total Domestic Mining Industries advanced 8.1 percent in February, after posting a 2.9-percent gain in January. (Net output price indexes are not seasonally adjusted.) Prices received by the crude petroleum, natural gas, and natural gas liquids industry advanced 11.5 percent, following a 4.0-percent rise in the previous month. Prices received by the gold ores industry and the construction sand and gravel industry also rose more than in the prior month. The indexes for the drilling oil and gas wells industry and for the potash, soda, and borate minerals industry turned up, after falling a month ago. By contrast, the index for the bituminous coal and lignite industry declined 1.6 percent in February, following a 1.0-percent increase in January. Prices received by the copper ores industry and the crushed and broken limestone industry rose less than a month ago. In February, the Producer Price Index for the Net Output of Total Mining Industries stood at 97.3 (December 1984 = 100), 55.7 percent above its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Domestic Manufacturing Industries posted a 0.9-percent gain in February, after edging up 0.2 percent in January. Prices received by the petroleum refining and related products industry group advanced 10.1 percent, following a 1.5-percent rise in the prior month. The indexes for the tobacco manufactures industry group and the food and kindred products industry group turned up from the previous month. Prices received by the chemicals and allied products industry group increased more than in January. The index for the electrical and electronic machinery, equipment, and supplies industry group fell less than a month ago. By contrast, prices received by the transportation equipment industry group edged down 0.1 percent in February, following a 0.1-percent gain in January. The indexes for the printing and publishing industry group; the lumber and wood products, except furniture industry group; and the stone, clay, glass, and concrete products industry group rose less than a month ago. In February, the Producer Price Index for the Net Output of Total Manufacturing Industries stood at 132.0 (December 1984 = 100), 4.8 percent above its year- ago level.

Other. Among other industries, prices received by operators and lessors of nonresidential buildings, real estate agents and managers, home health care services, scheduled air transportation, truck rental and leasing, travel agencies, and for engineering design, analysis, and consulting services rose in February. These advances more than offset declining prices for telephone communications (except radiotelephone), offices of physicians, radio broadcasting, prepackaged software, line-haul operating railroads, cable and other pay television services, and wireless telecommunications.

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 1999 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.

1/ The indexes for October 1999 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.

1/ Data for October 1999 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.

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 1999 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

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 1999 have been recalculated to incorporate late reports and corrections by respondents. 2/ Includes crude petroleum. 3/ Excludes crude petroleum.