April 2001 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 0.3 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This increase followed a 0.1-percent decline in March and a 0.1-percent gain in February. The index for finished goods other than foods and energy moved up 0.2 percent, compared with a 0.1- percent increase in March. Prices received by producers of intermediate goods fell 0.2 percent in April, the same rate of decrease as in the prior month. The crude goods index turned up 0.9 percent, following a 1.7- percent drop in March. (See table A.)

Prices for finished energy goods led the acceleration in the finished goods index by edging up 0.1 percent in April, after dropping 2.6 percent in March. Capital equipment prices also contributed to this acceleration, although to a lesser extent, by advancing 0.3 percent in April, after showing no change in the previous month. By contrast, price increases for finished consumer foods slowed from a 1.1-percent rate of increase in March to a 0.6-percent rate in April. The index for finished consumer goods other than foods and energy increased 0.2 percent in April, after moving up 0.3 percent in the prior month.

Before seasonal adjustment, the Producer Price Index for Finished Goods advanced 0.5 percent to stand at 141.7 (1982=100). From April 2000 to April 2001, finished goods prices gained 3.7 percent. Over the same period, the index for finished energy goods increased 13.5 percent, finished goods other than foods and energy advanced 1.6 percent, and finished consumer foods rose 3.1 percent. Prices received by producers of intermediate goods increased 2.0 percent for the 12 months ended April 2001, and the index for crude goods advanced 19.4 percent during the same period.

Finished goods

Prices for finished energy goods turned up 0.1 percent in April, after registering a 2.6-percent decline in March. The gasoline index advanced 7.0 percent, following a 0.5-percent rise in the prior month. Home heating oil prices turned up, after declining in March. The indexes for liquefied petroleum gas and diesel fuel fell less than they did a month ago. Conversely, the index for residential natural gas decreased 4.3 percent in April, following a 4.0-percent drop a month earlier.

Capital equipment prices advanced 0.3 percent in April, after showing no change in March. The index for electronic computers turned up 1.5 percent, following a 5.9-percent drop in the previous month. Civilian aircraft prices rose more than they did a month ago. The indexes for tools, dies, jigs, fixtures, and industrial molds and for office and store machines and equipment showed no change in April, after falling in the prior month. Prices for pumps and compressors and for truck trailers turned up, following March declines. By contrast, the index for passenger cars increased 0.2 percent in April, after advancing 0.6 percent in March. Prices for light motor trucks, commercial furniture, and heavy motor trucks also rose less in April than they did in the prior month. The index for x- ray and electromedical equipment declined at a faster rate than it did in the prior month.

The finished consumer foods index advanced 0.6 percent in April, after posting a 1.1-percent gain in March. Pork prices rose 2.0 percent, following a 7.8-percent increase in the prior month. The index for beef and veal also rose less in April. Prices for fresh and dry vegetables, bakery products, and for shortening and cooking oils turned down in April, after rising in the prior month. By contrast, prices for eggs for fresh use jumped 37.0 percent in April, following a 9.1-percent decline in the previous month. The indexes for finfish and shellfish, processed turkeys, and for processed fruits and vegetables also rose, after falling in March.

In April, the index for finished consumer goods other than foods and energy edged up 0.2 percent, following a 0.3-percent gain in March. Prices for prescription drugs, alcoholic beverages, newspaper circulation, passenger cars, sanitary papers and health products, and pet food rose in April. These increases outweighed falling prices for men's and boys' apparel, book publishing, household appliances, household furniture, and for lawn and garden equipment.

Intermediate Goods

The Producer Price Index for Intermediate Materials, Supplies, and Components declined 0.2 percent in April, seasonally adjusted, the same rate of decline as in March. Decreasing prices for intermediate energy goods, nondurable manufacturing materials, durable manufacturing materials, and intermediate foods and feeds outweighed increasing prices for manufacturing components and construction materials. Excluding foods and energy, the index for intermediate materials, supplies, and components decreased 0.1 percent, after increasing 0.1 percent in the previous month. (See table B.)

Prices for intermediate energy goods fell 1.5 percent in April, following a 1.4-percent decline in March. Falling prices for jet fuels, liquefied petroleum gas, commercial natural gas, commercial electric power, diesel fuel, industrial electric power, and industrial natural gas more than offset increasing prices for gasoline.

By dropping 2.3 percent, basic organic chemical prices led April's 0.4- percent decline in the index for nondurable manufacturing materials. Prices for nitrogenates, medicinal and botanical chemicals, and woodpulp also moved down. Conversely, the basic inorganic chemicals index rose 2.4 percent in April. The indexes for plastic resins and materials, finished fabrics, and leather also increased.

Prices for durable manufacturing materials declined 0.6 percent in April, following a 0.2-percent decrease in March. The aluminum mill shapes index dropped 0.9 percent, after increasing 0.1 percent in the previous month. Prices for primary aluminum (except extrusion billet) and for copper cathode and refined copper fell more than they did in March. The indexes for cement, plywood, prepared paint, and gold turned down, after showing gains in the prior month. On the other hand, prices for steel mill products fell 0.6 percent in April, compared with a 0.9-percent decrease in March. The index for copper and brass mill shapes also fell at a slower pace in April than it did in March. Prices for metal foil and leaf turned up, after falling last month. Flat glass price increases accelerated in April.

The index for intermediate foods and feeds edged down 0.1 percent, after posting a 0.5-percent gain in March. Price decreases for prepared animal feeds, flour, and snack chips were offset by increasing prices for fluid milk products; pork; frozen ground meat patties; and for natural, processed, and imitation cheese.

For the second straight month, prices for components for manufacturing increased 0.2 percent. Rising prices for aircraft engines and engine parts, non-automotive metal stampings, plastic transportation parts, and industrial rubber products outweighed falling prices for motor vehicle parts, machine shop products, and closed die steel forgings.

As in March, the April index for materials and components for construction increased 0.1 percent. Advancing prices for plastic construction products, softwood lumber, millwork, wiring devices, asphalt felts and coatings, and switchgear were offset by declining prices for gypsum products, nonferrous wire and cable, plumbing fixtures and brass fittings, plywood, and cement.

Crude goods

The Producer Price Index for Crude Materials for Further Processing advanced 0.9 percent, seasonally adjusted, after registering a 1.7-percent decline in March. Accounting for this upturn, prices for crude energy materials increased in April, following a March decrease. By contrast, the index for crude foodstuffs and feedstuffs fell, after rising in the prior month, and basic industrial material prices fell more than they did in March. (See table B.)

The index for crude energy materials rose 3.0 percent in April, following a 4.9-percent drop in March. Natural gas prices led the way with a 3.8-percent advance, after posting a 4.7-percent decline in the prior month. Also contributing to this month's acceleration, the crude petroleum index increased 2.4 percent, compared with a 7.1-percent decrease a month earlier. Coal prices gained 0.3 percent, after falling 0.4 percent in the previous month.

The index for crude foodstuffs and feedstuffs declined 0.5 percent in April, following a 3.0-percent jump in March. Slaughter hog prices dropped 4.8 percent, after a 13.8-percent rise in the prior month. The indexes for slaughter cattle, slaughter broilers and fryers, wheat, soybeans, corn, and for fresh and dry vegetables also fell, following March gains. On the other hand, fluid milk prices advanced 8.1 percent in April, after increasing 5.7 percent a month earlier. The indexes for alfalfa hay, unprocessed finfish, and raw cane sugar turned up, following declines in the previous month.

Prices for basic industrial materials decreased 2.6 percent in April, after falling 1.3 percent in March. The leaf tobacco index dropped 24.2 percent, following an 11.9-percent fall in the prior month. Prices for gold ores, iron and steel scrap, and pulpwood turned down in April. The wastepaper index declined more than it did a month earlier. Prices for phosphates and for hardwood logs, bolts, and timber rose less in April than they did in the previous month. By contrast, the raw cotton index decreased 7.7 percent, after dropping 16.4 percent in March. Prices for copper base scrap also fell less than they did in the prior month. The indexes for aluminum base scrap and cattle hides rose more than they did in March.

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

Mining. The Producer Price Index for the Net Output of Total Mining Industries advanced 1.1 percent in April, following a 5.4-percent drop in March. (Net output price indexes are not seasonally adjusted.) Most of April's upturn can be traced to a 1.6-percent rise in prices received by the crude petroleum, natural gas, and natural gas liquids industry, which followed a 6.9-percent decline in the prior month. The index for the bituminous coal and lignite industry also turned up in April. By contrast, prices received by the gold ores industry moved down 4.6 percent, after increasing 2.9 percent in March. Prices received by the oil and gas exploration services industry and the potash, soda, and borate minerals industry also fell, following gains a month earlier. In April, the Producer Price Index for the Net Output of Total Mining Industries stood at 132.2 (December 1984 = 100), 38.1 percent above its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries rose 0.6 percent in April, after edging down 0.1 percent in March. Leading this reversal, prices received by the petroleum refining and related products industry group jumped 6.3 percent, following a 4.2-percent dip in the previous month. The index for the measuring and controlling instruments industry group also turned up in April. Prices received by the machinery (except electrical) industry group advanced, after showing no change a month earlier, while the index for the printing and publishing industry group increased more than it did in the prior month. On the other hand, prices received by the food and kindred products industry group rose 0.6 percent, following a 1.0-percent gain in March. The indexes for the chemicals and allied products and the furniture and fixtures industry groups turned down in April. Prices received by the transportation equipment and the lumber and wood products (except furniture) industry groups advanced less in April than they did in the previous month. In April, the Producer Price Index for the Net Output of Total Manufacturing Industries stood at 135.4 (December 1984 = 100), 2.1 percent above its year-ago level.

Services. Among service industries in April, prices increased for property and casualty insurance, skilled and intermediate care facilities, offices of physicians, general medical and surgical hospitals, life insurance carriers, and prepackaged software. By contrast, prices received by the operators and lessors of nonresidential buildings, the passenger car rental, the telephone communications (except radiotelephone), and the scheduled air transportation industries fell in April.

One-Month Lag in Producer Price Indexes for Liquefied Petroleum Gas to be Removed Effective with Data for July 2001

Effective with the release of data for July 2001, the 1-month lag in the Producer Price Index (PPI) for Liquefied Petroleum Gas, commodity code 05-32, will be eliminated. Since 1971, the liquefied petroleum gas index has been calculated with prices that lag behind the index reference date by one month. For example, the Producer Price Index for January contains liquefied petroleum gas prices for December.

In order to eliminate this lag, the Bureau of Labor Statistics will utilize the natural gas liquids price data published by the Oil Price Information Service (OPIS) to estimate the PPI. These data will be used in the first-released index for liquefied petroleum gas. As is customary practice, a revised PPI for Liquefied Petroleum Gas will be published four months later. At that time, the interim estimates of price movement using OPIS data will be replaced with prices from the PPI sample.

The July 2001 PPI for Liquefied Petroleum Gas to be released on August 10 will reflect the prices for this commodity as of July 2001. Indexes prior to July will continue to represent liquefied petroleum gas prices with a 1-month lag. As a result of this modification, the July 2001 percent change for the liquefied petroleum gas index will represent a 2- month (May to July) price movement.

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 December 2000 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 December 2000 have been recalculated to incorporate 2/ Not seasonally adjusted. late reports and corrections by respondents. All indexes are subject 3/ Not available. to revision 4 months after original publication. Table 3. Producer price indexes for selected commodity groupings (1982=100 unless otherwise indicated)

1/ Data for December 2000 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 December 2000 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 December 2000 have been recalculated to incorporate late reports and corrections by respondents. 2/ Includes crude petroleum. 3/ Excludes crude petroleum.