April 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 declined 0.2 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This decrease, which was led by a drop in finished consumer food prices, followed a 1.0-percent increase in March and a 0.2-percent gain in February. The index for finished goods other than foods and energy rose 0.1 percent, the same rate of increase as in March. Prices for intermediate goods moved up 0.9 percent in April, following a 1.0-percent advance in March. The crude goods index rose 5.5 percent in April, after increasing 4.0 percent in the previous month. (See table A.)

Prices for finished consumer foods fell 3.2 percent in April, after rising 0.6 percent in March. Prices for finished energy goods increased 2.5 percent, following a 5.5-percent jump in March. After rising 0.1 percent in March, April's capital equipment index edged down 0.1 percent. By contrast, prices for finished consumer goods other than foods and energy rose 0.3 percent, following a 0.2-percent gain in March.

Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.1 percent in April to stand at 139.0 (1982=100). From April 2001 to April 2002, the finished goods index decreased 2.0 percent. During the same period, prices for finished energy goods fell 12.1 percent, and the index for finished consumer foods declined 1.8 percent. On the other hand, prices for finished goods other than foods and energy increased 0.4 percent. At the earlier stages of processing, prices received by producers of intermediate goods decreased 2.4 percent, and the crude goods index dropped 18.9 percent.

Finished goods

The index for finished consumer foods turned down 3.2 percent in April, after registering a 0.6-percent increase in the prior month. Prices for fresh and dry vegetables posted a record decline of 46.5 percent in April, compared with a 22.7-percent jump in March. The indexes for eggs for fresh use, beef and veal, and roasted coffee also decreased, after rising in the previous month. Prices for pork, fresh fruits and melons, processed young chickens, and processed turkeys fell more than they did in March. By contrast, the finfish and shellfish index turned up 1.7 percent, following a 9.1-percent decrease in the prior month. Prices for dairy products and processed fruits and vegetables declined at a slower pace than they did in March. The bakery products index rose, after falling in the previous month. Shortening and cooking oil prices advanced more than they did in March.

The finished energy goods index rose 2.5 percent in April, following a 5.5-percent gain in the prior month. This deceleration was primarily due to gasoline prices, which advanced 4.2 percent compared with a 21.3-percent increase in March. The indexes for liquefied petroleum gas, home heating oil, and diesel fuel also increased at a slower rate than in the previous month. On the other hand, prices for residential natural gas moved up 3.0 percent in April, following a 0.8-percent increase a month earlier. The index for lubricating and similar oils rose more than it did in March.

Prices for capital equipment declined 0.1 percent in April, after inching up 0.1 percent in the previous month. The light motor trucks index turned down 1.4 percent, following a 0.8-percent gain in March. The indexes for integrating and measuring instruments and agricultural machinery also turned down in April. Heavy motor truck prices rose less in April than they did in the prior month. X-ray and electromedical equipment prices showed no change, after increasing in March. By contrast, the index for communication and related equipment turned up 0.3 percent in April, following a 1.1-percent decline in the previous month. The index for truck trailers also advanced, after decreasing in the previous month. Prices for passenger cars showed no change, after falling in March.

The index for finished consumer goods other than foods and energy moved up 0.3 percent in April, following a 0.2-percent rise in the previous month. April's increase was primarily due to a 4.4-percent rise in cigarette prices. The indexes for sanitary papers and health products, pharmaceutical preparations, periodical circulation, mobile homes, alcoholic beverages, and lawn and garden equipment (except tractors) also increased in April. On the other hand, falling prices were reported for light motor trucks, apparel, and book publishing.

Intermediate goods

Prices for Intermediate Materials, Supplies, and Components rose 0.9 percent in April, after advancing 1.0 percent in the previous month. A majority of April's price increase can be traced to the index for intermediate energy goods, while the indexes for nondurable manufacturing materials and materials for construction also advanced. On the other hand, prices for intermediate foods and feeds decreased in April, and the index for durable manufacturing materials showed no change in April. Prices for intermediate goods other than foods and energy rose 0.2 percent, after posting a 0.3-percent rise in March. (See table B.)

The index for intermediate energy goods advanced 4.4 percent in April, after posting a 5.2-percent gain in March. Key to this deceleration, gasoline prices rose 4.2 percent in April, following a 21.3-percent increase in the prior month. The indexes for diesel fuel, liquefied petroleum gas, jet fuels, natural gas to electric utilities, and commercial electric power also advanced at a slower rate in April than in March. Alternatively, industrial electric power prices rose 0.3 percent in April, after dropping 2.8 percent in the preceding month. Prices for industrial natural gas, commercial natural gas, and residual fuel increased at a faster pace in April than they did in March.

After rising 0.8 percent in March, April prices for nondurable manufacturing materials climbed 1.3 percent. Much of this acceleration can be traced to the plastic resins and materials index -- which rose 3.4 percent in April, after falling 3.6 percent in the previous month. The indexes for intermediate basic organic chemicals, paint materials, and gray fabrics advanced at a faster pace in April than they did in March. By contrast, the index for primary basic organic chemicals moved up 8.8 percent in April, after registering a 12.7-percent gain in the prior month. The index for medicinal and botanical chemicals also rose at a slower pace than it did in March. Prices for phosphates turned down in April, while paper prices fell at a faster rate than in the preceding month.

The Producer Price Index for Materials and Components for Construction moved up 0.3 percent, following a 0.1-percent increase in March. Prices for plastic construction products rose 2.3 percent in April, after falling 0.6 percent a month ago. The indexes for fabricated structural metal products, hardwood lumber, and gypsum products also turned up in April. Prices for wiring devices rose faster in April than they did in March. On the other hand, the index for plywood turned down 0.6 percent, after posting a 4.3-percent increase in March. Prices for heating equipment and metal valves (except fluid power) also turned down, after rising in the prior month. The softwood lumber index rose at a slower pace in April than it did in March.

The index for intermediate foods and feeds decreased 0.7 percent in April, after increasing 0.2 percent in March. Beef and veal prices fell 2.6 percent, following a 0.8-percent rise in March. The index for flour also turned down in April, after rising in the prior month. Prepared animal feed prices rose at a slower rate in April than in March. The indexes for pork and fluid milk products fell faster than they did in the prior month. By contrast, the index for natural, processed, and imitation cheese rose 1.0 percent in April, following a 3.0-percent decline in the previous month. Prices for confectionery materials also increased, after falling in March. The indexes for refined sugar and crude vegetable oils climbed at a faster rate in April than they did in the preceding month.

Prices for durable manufacturing materials showed no change in April, following a 0.7-percent increase in the previous month. The index for aluminum mill shapes dropped 2.3 percent, after posting a 0.3-percent gain in March. Prices for hot rolled bars, plates and structural shapes; primary aluminum, except extrusion billet; and building paper and board also turned down in April. Hot rolled sheet and strip prices rose at a slower rate in April than they did in March. By contrast, the index for cold finished bars advanced 2.8 percent in April, following a 0.4-percent decline a month ago. Prices for semi-finished steel mill products, flat glass, and hardwood lumber also turned up, after falling in the prior month. Cold rolled sheet and strip prices rose at a faster pace in April than they did in March.

Crude goods

The Producer Price Index for Crude Materials for Further Processing advanced 5.5 percent in April, seasonally adjusted, following a 4.0-percent increase in March. Prices for crude energy materials rose more than they did in the prior month. Basic industrial material prices increased, after declining in March. By contrast, the index for crude foodstuffs and feedstuffs fell at a faster rate in April than it did in the previous month. (See table B.)

The index for crude energy materials climbed 22.4 percent in April, following a 15.2-percent increase in March. Natural gas prices rose 39.5 percent, after increasing 19.7 percent in the prior month. On the other hand, the coal index fell 1.0 percent, after advancing 4.7 percent in the previous month. Price increases for crude petroleum slowed to 15.2 percent in April, compared with a 16.1-percent rise in March.

The index for basic industrial materials moved up 3.6 percent in April, after falling 0.7 percent in March. Iron and steel scrap prices advanced 10.8 percent, following a 2.5-percent increase in the previous month. Prices for nonferrous scrap also rose more quickly in April than they did a month earlier. The indexes for wastepaper and gold ores turned up, after decreasing in March. Conversely, the pulpwood index decreased 1.3 percent in April, after advancing 12.7 percent in March. The index for phosphates also turned down, following an increase a month ago. Prices for hides and skins and for softwood logs, bolts, and timber rose at a slower pace in April than they did in March.

The index for crude foodstuffs and feedstuffs declined 6.4 percent in April, following a 1.3-percent decrease in March. Slaughter cattle prices dropped 6.5 percent, after a 3.0-percent rise in the prior month. The index for fresh vegetables (except potatoes) also fell, following a gain in March. Prices for slaughter hogs, slaughter broilers and fryers, unprocessed shellfish, and fresh fruits and melons declined at a greater rate in April than they did a month earlier. On the other hand, the fluid milk index decreased 1.6 percent, after dropping 5.3 percent in March. Prices for corn, alfalfa hay, and unprocessed finfish turned up in April, following declines in the previous month.

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

Mining. The Producer Price Index for the Net Output of Total Domestic Mining Industries advanced 16.2 percent in April, after registering a 10.4- percent gain in March. (Net output price indexes are not seasonally adjusted.) Most of the faster rate of increase in mining industry prices can be traced to the index for the oil and gas extraction industry group, which surged 24.3 percent in April, following a 15.6-percent rise in the previous month. Prices received by the metal mining industry group increased 0.8 percent, after falling 2.7 percent in March. By contrast, the index for the coal mining industry group declined 1.0 percent in April, compared with a 3.8-percent rise a month earlier. Prices received by the industry group for mining and quarrying of nonmetallic minerals (except fuels) edged down 0.1 percent in April, following a 0.1-percent gain in the prior month. In April, the Producer Price Index for Total Mining Industries stood at 99.9 (December 1984=100), 24.4 percent below its year- ago level.

Manufacturing. For the second consecutive month, the Producer Price Index for the Net Output of Total Domestic Manufacturing Industries advanced at a 0.7-percent rate. April's jump in manufacturing industry prices was led by a 12.6-percent rise in the industry group index for petroleum refining and related products. The industry group indexes for tobacco manufactures, chemicals and allied products, and paper and allied products also increased in April. Conversely, April prices received by the industry groups for food and kindred products, electrical and electronic machinery and equipment, transportation equipment, measuring and controlling instruments, and machinery (except electrical) declined. In April, the Producer Price Index for Total Manufacturing Industries stood at 133.8 (December 1984=100), 1.3 percent lower than a year ago.

Services. Among service industries in April, price increases were registered by the industries for engineering services, data processing services, wireless telecommunications, skilled and intermediate care facilities, general medical and surgical hospitals, and advertising agencies. Alternatively, falling prices were experienced by the industries for scheduled air transportation, telephone communications (except radiotelephone), prepackaged software, travel agencies, deep sea foreign transportation of freight, air courier services, and help supply services.

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