March 2002 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 advanced 1.0 percent in March, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This increase followed a 0.2-percent increase in February and a 0.1-percent rise in January. The intermediate goods index advanced 1.0 percent in March, after dropping 0.1 percent in the prior month. Prices received by producers of crude goods rose 4.0 percent, following a 0.8-percent decline in February. (See table A.)

March's acceleration in the finished goods index was primarily due to prices for finished energy goods, which advanced 5.5 percent compared with a 0.4-percent gain in February. Excluding energy goods, the index for finished goods rose 0.2 percent in March. Prices for finished goods other than foods and energy edged up 0.1 percent, after being unchanged in the prior month. In contrast, the index for finished consumer foods increased less in March than in February.

During the first quarter of 2002, the Finished Goods Price Index advanced at a seasonally adjusted annual rate of 5.6 percent, after posting a 9.6-percent decline during the fourth quarter of 2001. The index for finished energy goods rose at a 26.3-percent annual rate during the first quarter of 2002, after dropping 43.4 percent in the last three months of 2001. Finished consumer food prices moved up 10.0 percent from December 2001 to March 2002, following a 4.2-percent annual rate of decline in the previous quarter. Prices for finished goods other than foods and energy rose at a 0.3-percent rate over the first quarter of 2002, after declining at a 1.3-percent seasonally adjusted annual rate in the previous quarter. Prices for intermediate materials, supplies, and components rose 3.5 percent in the first quarter of 2002, following a 10.4-percent rate of decline in the final quarter of 2001. During the first three months of 2002, the Producer Price Index for Crude Materials for Further Processing advanced at a seasonally adjusted annual rate of 30.6 percent, after dropping at a 37.9-percent rate in the prior quarter.

Crude materials for further processing 15.3 35.5 -32.4 -32.6 -34.5 -37.9 30.6 Foodstuffs and feedstuffs -.1 7.4 -7.4 -4.0 3.8 -34.7 21.6 Crude energy materials 36.9 85.6 -53.0 -52.0 -63.7 -51.3 67.1 Crude nonfood materials less energy 14.0 -5.5 -9.9 -15.3 -2.4 -9.0 1.3 NOTE: Late reports and corrections by respondents may cause some indexes to change 4 months after original publication. In addition, seasonally adjusted indexes may be revised for 5 years, due to the recalculation of seasonal factors each January.

Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.9 percent in March to stand at 138.9 (1982=100). From March 2001 to March 2002, the finished goods index fell 1.4 percent. During the same period, the index for finished goods other than foods and energy rose 0.4 percent, and prices for finished consumer foods advanced 1.8 percent. By contrast, the index for finished energy goods fell 13.5 percent. At the earlier stages of processing, prices received by producers of intermediate goods decreased 3.2 percent, and the crude goods index dropped 22.6 percent.

Finished goods

The index for finished energy goods advanced 5.5 percent in March, after posting a 0.4-percent gain in February. Gasoline prices rose 21.3 percent in March (the second largest increase on record), following a 4.5- percent increase a month earlier. The indexes for liquefied petroleum gas and home heating oil increased at a faster rate in March than they did in the previous month. March prices for residential natural gas and diesel fuel advanced, after declining in February.

Prices for finished consumer goods other than foods and energy increased 0.2 percent in March, following a 0.1-percent decline in February. The indexes for book publishing, floor coverings, lawn and garden equipment, and household appliances also turned up in March, following declines a month earlier. Prices for cosmetics and other toilet preparations rose this month, after showing no change in February, while the index for sanitary papers and health products posted no change in March, after falling in the prior month. Prices for light motor trucks and alcoholic beverages rose at a faster pace in March than they did in February. By contrast, the index for periodical circulation posted a 0.8- percent decline, following a 1.2-percent gain in February. Prices for women's apparel and passenger cars fell at a faster rate in March than they did in the prior month. The index for soaps and synthetic detergents fell this month, after showing no change in the previous month. During the first quarter of 2002, prices for finished consumer goods other than foods and energy showed no change, after registering a 0.8-percent rate of decline in the final quarter of 2001.

The index for finished consumer foods rose at a slower pace in March than in February, 0.6 percent compared with 1.0 percent. Similarly, the 0.8-percent price increase for beef and veal was less than the 7.4-percent jump in February. The index for finfish and shellfish fell in March, following an increase a month earlier, while prices for processed young chickens fell this month, after posting no change in February. Dairy product prices fell at a faster rate in March than they did in the prior month. Alternatively, prices for fresh fruits and melons fell 3.3 percent in March, after dropping 13.3 percent in February. The indexes for eggs for fresh use and for shortening and cooking oils advanced in March, following declines in the previous month. The index for fresh and dry vegetables rose faster in March than it did a month earlier.

The capital equipment index rose 0.1 percent in both March and February. Price increases for light motor trucks, heavy motor trucks, and for x-ray and electromedical equipment were offset by falling prices for communication and related equipment, passenger cars, and electronic computers. The index for capital equipment posted a 0.3-percent seasonally adjusted annual rate of increase in the first three months of 2002, following a 2.0-percent rate of decline a quarter earlier.

Intermediate Goods

The Producer Price Index for Intermediate Materials, Supplies, and Components increased 1.0 percent in March, after edging down 0.1-percent in February. An upturn in prices for intermediate energy goods in March contributed significantly to the movement of the overall intermediate goods index. The indexes for durable manufacturing materials and intermediate foods and feeds rose, after showing no change in the prior month. Prices for nondurable manufacturing materials advanced at a faster pace than they did in February. The index for materials and components for construction inched up, following a decline in the previous month. Prices for intermediate goods other than foods and energy rose in March, after showing no change a month ago. (See table B.)

The index for intermediate energy goods jumped 5.2 percent in March (the largest increase since a 7.5-percent advance in October 1990), after falling 0.7 percent in February. March prices for gasoline and liquefied petroleum gas rose more than they did in February. The indexes for natural gas to electric utilities, diesel fuel, jet fuels, industrial natural gas, commercial natural gas, and commercial electric power turned up, after declining in the previous month. By contrast, the index for industrial electric power decreased 2.8 percent, following a 0.2-percent fall in the prior month. Prices for intermediate energy goods advanced at a 16.8- percent seasonally adjusted annual rate from December 2001 to March 2002, after registering a 40.3-percent rate of decline during the previous three months.

The durable manufacturing materials index increased 0.7 percent in March, after showing no change in February. Hot rolled sheet and strip prices rose 3.6 percent, following a 1.1-percent decline in the previous month. The indexes for primary aluminum (except extrusion billet) and prepared paint also turned up, after falling in the prior month. Prices for hot rolled bars, plates, and structural shapes increased, after showing no change in February. The indexes for building paper and board, copper and brass mill shapes, and plywood advanced at a faster rate than they did a month ago. On the other hand, flat glass prices decreased 0.4 percent in March, following a 0.2-percent gain in the previous month. The cold rolled sheet and strip index rose less than it did in February. Prices for semi- finished steel mill products, gold, and cement turned down in March. The index for materials for durable manufacturing increased at a seasonally adjusted annual rate of 3.3 percent during the first quarter of 2002, after falling at a 5.7-percent annual rate in the previous quarter.

Prices for nondurable manufacturing materials rose 0.8 percent in March, after posting a 0.6-percent gain in the prior month. The primary basic organic chemicals index moved up 12.7 percent, following a 1.1- percent increase in February. The index for potassium and sodium compounds also rose at a faster pace in March than in February. The index for paper decreased less than it did a month ago. Prices for gray fabrics, fertilizer materials, and for medicinal and botanical chemicals turned up, after falling in the previous month. Conversely, prices for plastic resins and materials turned down 3.6 percent, following a 2.8-percent increase in February. The indexes for woodpulp and leather also declined, after advancing in the prior month. Prices for paint materials and intermediate basic organic materials rose at a slower pace than they did in the previous month. From December 2001 to March 2002, the index for materials for nondurable manufacturing advanced at a 0.6-percent seasonally adjusted annual rate, following a 9.8-percent rate of decline during the final quarter of 2001.

Prices for materials and components for construction edged up 0.1 percent in March, after posting a 0.1-percent decline in February. The index for softwood lumber rose 2.7 percent, following a 1.2-percent increase in the prior month. The index for plywood also advanced at a faster rate than it did in February. Prices for nonferrous wire and cable, plastic construction products, and hardwood lumber fell less than they did a month ago. On the other hand, gypsum product prices decreased 3.5 percent in March, following a 1.8-percent gain in the previous month. The indexes for air conditioning and refrigeration equipment also turned down in March. Prices for fabricated structural metal products and for asphalt felts and coatings moved down, after showing no change in the prior month. The wiring devices index increased less than it did in February. During the first quarter of 2002, prices for materials and components for construction advanced at a 0.8-percent seasonally adjusted annual rate, following a 2.1-percent rate of decline during the prior quarter.

The intermediate foods and feeds index advanced 0.2 percent in March, after showing no change in February. Prepared animal feed prices turned up 1.4 percent, following a 1.2-percent decline in the previous month. The crude vegetable oils index also increased, after falling in February. Prices for confectionery materials decreased at a slower pace than they did a month ago. The indexes for refined sugar, flour, and dry mix preparations moved up in March, after showing no change in the prior month. By contrast, beef and veal prices advanced 0.8 percent in March, following a 7.4-percent increase in February. The index for natural, processed, and imitation cheese turned down in March. Prices for pork fell, after showing no change in the prior month. The index for dry, condensed, and evaporated milk products declined more than it did in February. From December 2001 to March 2002, prices for intermediate foods and feeds rose at a 0.3-percent seasonally adjusted annual rate, after decreasing at an 11.3-percent rate for the previous quarter.

Crude Goods

The Producer Price Index for Crude Materials for Further Processing advanced 4.0 percent in March, seasonally adjusted, following a 0.8-percent decline in February. Prices for crude energy materials increased in March, after falling in the previous month. By contrast, the indexes for crude foodstuffs and feedstuffs and for basic industrial materials turned down, after rising a month earlier. (See table B.)

Prices for crude energy materials jumped 15.2 percent in March, following a 6.5-percent decline in February. The natural gas index rebounded 19.7 percent, after dropping 20.7 percent in the prior month. Coal prices increased 4.7 percent, following a 1.6-percent decline in February. The index for crude petroleum advanced 16.1 percent, after rising 13.3 percent a month ago. Prices for crude energy materials rose at a 67.1-percent seasonally adjusted annual rate from December 2001 to March 2002, following a 51.3-percent rate of decline from September 2001 to December 2001.

Subsequent to a 2.3-percent rise in February, the crude foodstuffs and feedstuffs index declined 1.3 percent in March. The rate of increase in slaughter cattle prices slowed from 9.6 percent in February to 3.0 percent in March. The fluid milk index turned down, after increasing in the previous month. Prices for slaughter broilers and fryers, slaughter hogs, and corn fell more in March than they did in February. Partially offsetting the downturn in prices for crude foodstuffs and feedstuffs, the index for soybeans increased 4.1 percent, after declining 0.9 percent a month earlier. March prices for fresh fruits and melons, wheat, and alfalfa hay fell less than they did in the prior month. The index for fresh and dry vegetables advanced at a slightly faster rate in March than it did in February. From December 2001 to March 2002, prices for crude foodstuffs and feedstuffs rose at a 21.6-percent seasonally adjusted annual rate, following a 34.7-percent rate of decline in the final quarter of 2001.

The index for basic industrial materials fell 0.7 percent, following a 1.5-percent gain in February. Leaf tobacco prices moved down 26.5 percent, after falling 2.4 percent in the previous month. The index for iron and steel scrap rose less in March than it did a month earlier. Prices for gold ores and raw cotton turned down, following increases in February. The index for construction sand, gravel, and crushed stone showed no change, after increasing a month ago. March prices for wastepaper declined more rapidly than they did in February. By contrast, the index for pulpwood posted a 12.7-percent rise in March, after showing no change a month earlier. Prices for aluminum base scrap and for hides and skins turned up, after falling in February. The index for softwood logs, bolts, and timber rose more than it did in the previous month, while prices for hardwood logs, bolts, and timber fell at a slower rate in March than they did in February. The basic industrial materials index advanced at a 1.3-percent seasonally adjusted annual rate from December 2001 to March 2002, following a 9.0-percent rate of decline in the final quarter of 2001.

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

Mining. The Producer Price Index for the Net Output of Total Domestic Mining Industries jumped 10.4 percent in March, following a 4.5-percent decline in February. (Net output price indexes are not seasonally adjusted.) Most of this upturn can be traced to the index for crude petroleum, natural gas, and natural gas liquids, which surged 17.7 percent, after dropping 7.6 percent in the prior month. Prices received by the industries for bituminous coal and lignite surface mining, coal mining services, construction sand and gravel, and iron ores also turned up in March. The March index for the bituminous coal underground mining industry fell at a slower rate than it did in February. By contrast, prices received by the gold ores industry decreased 1.9 percent in March, following a 4.7-percent rise a month earlier. The index for the oil and gas well drilling industry declined at a faster pace in March than it did in the previous month. Prices received by the industries for potash, soda, and borate minerals; crushed and broken granite; oil and gas field exploration services; and kaolin and ball clay turned down, after increasing in February. From December 2001 to March 2002, the Producer Price Index for the Net Output of Total Mining Industries advanced at a 47.8-percent annual rate, following a 45.5-percent rate of decrease over the previous calendar quarter. In March 2002, this index stood at 86.0, 34.5-percent below its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries rose 0.7 percent in March, after moving up 0.2 percent in February. An 11.8-percent increase in prices received by the petroleum refining and related products industry group -- which followed a 2.2-percent gain in February -- accounted for most of the acceleration in manufacturing industry prices. The industry group indexes for machinery (except electrical), rubber and miscellaneous plastic products, textile mill products, and primary metals turned up in March. Prices received by the lumber and wood products (except furniture) industry group advanced more than they did in February. On the other hand, the industry group index for food and kindred products edged up 0.1 percent in March, after gaining 0.5 percent a month earlier. Prices received by the chemicals and allied products industry group also exhibited a slower rate of increase. The industry group index for electrical and electronic machinery and equipment fell at a faster rate than it did in the previous month. Prices received by both the industry groups for printing and publishing and for measuring and controlling instrument showed no change, following 0.2- percent gains in February. During the first quarter of 2002, the Producer Price Index for the Net Output of Total Manufacturing Industries rose at a 4.6 percent annual rate, after falling at an 11.8-percent rate during the prior calendar quarter. In March 2002, this index stood at 132.9, 1.2 percent below its year-ago level.

Services. Among service industries in March, rising prices were posted by the industries for scheduled air transportation, engineering services, accounting services, hotels and motels, travel agencies, data processing services, radio broadcasting, and freight transportation arrangement. Alternatively, the industries for truck rental and leasing, wireless telecommunications, local trucking without storage, help supply services, and general medical and surgical hospitals exhibited declining prices in March.

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 November 2001 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.

See footnotes at end of table.

1/ The indexes for November 2001 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.

1/ Data for November 2001 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 November 2001 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 November 2001 have been recalculated to incorporate late reports and corrections by respondents. 2/ Includes crude petroleum. 3/ Excludes crude petroleum.