April 2005 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 0.6 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This increase followed a 0.7-percent rise in March and a 0.4-percent gain in February. At the earlier stages of processing, prices received by manufacturers of intermediate goods climbed 0.8 percent, after advancing 1.0 percent in the previous month, while the crude goods index moved up 2.7 percent, following a 4.3-percent rise in March. (See table A.)

Among finished goods, much of April's increase was due to a 2.1- percent advance in the energy goods index. Excluding prices for energy goods, the finished goods index inched up 0.1 percent. The indexes for finished consumer goods other than foods and energy, capital equipment, and finished consumer foods also increased in April--rising 0.2, 0.2, and 0.1 percent, respectively. Excluding prices for foods and energy, the index for finished goods increased 0.3 percent in April, compared with a 0.1- percent gain in the prior month.

Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.6 percent in April to 154.4 (1982=100). From April 2004 to April 2005, prices for finished goods rose 4.8 percent. Over the same period, prices for finished energy goods jumped 15.9 percent, the index for finished goods other than foods and energy moved up 2.6 percent, and prices for finished consumer foods advanced 2.5 percent. For the 12 months ended April 2005, the intermediate goods index increased 8.2 percent and prices for crude goods went up 11.8 percent.

Finished goods

The index for finished energy goods advanced 2.1 percent in April, following a 3.3-percent gain in the preceding month. Gasoline prices increased 2.6 percent, compared with a 5.3-percent rise in March. The index for liquefied petroleum gas also rose less in April than it did in the prior month. Prices for diesel fuel, home heating oil, and residential electric power turned down, after increasing in March. By contrast, prices for residential natural gas rose 6.6 percent, following a 2.3-percent increase in March. (See table 2.)

The index for finished consumer goods other than foods and energy increased 0.2 percent in April, after inching up 0.1 percent in the prior month. Cigarette prices advanced 1.2 percent, following no change in March. Higher prices were also reported in April for pharmaceutical preparations; light motor trucks; passenger cars; women's, girls', and infants' apparel; and cosmetics and other toilet preparations. Alternatively, the indexes for alcoholic beverages, men's and boys' apparel, textile housefurnishings, mobile homes, and home electronic equipment declined in April.

The capital equipment index moved up 0.2 percent in April, compared with a 0.3-percent gain in March. In April, rising prices for industrial material handling equipment, light motor trucks, passenger cars, commercial furniture, civilian aircraft, and heavy motor trucks outweighed falling prices for x-ray and electromedical equipment; tools, dies, jigs, fixtures, and industrial molds; and electronic computers.

The index for finished consumer foods edged up 0.1 percent in April, following a 0.3-percent rise in the preceding month. In April, price increases for fresh fruits and melons, pork, roasted coffee, beef and veal, confectionery end products, and fresh and dry vegetables prevailed over price decreases for dairy products, soft drinks, finfish and shellfish, processed young chickens, and eggs for fresh use.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 0.8 percent in April, after registering a 1.0-percent increase in March. In April, rising prices for energy goods and for foods and feeds outweighed falling prices for materials for nondurable manufacturing and for materials and components for construction. The index for materials for durable manufacturing was unchanged in April. Excluding foods and energy, prices for intermediate goods moved up 0.2 percent, following a 0.3-percent advance in March. (See table B.)

The index for intermediate energy goods increased 3.4 percent in April, compared with a 3.7-percent jump in March. Nearly three fourths of April's rise can be attributed to higher prices for industrial natural gas, commercial natural gas, and natural gas to electric utilities -- climbing 8.4, 8.0, and 4.5 percent, respectively. The indexes for jet fuels, gasoline, residual fuels, and industrial electric power also went up in April, while prices for diesel fuel, home heating oil, and kerosene declined for the month. (See table 2.)

Prices for intermediate foods and feeds advanced 0.4 percent in April, after posting a 0.8-percent rise in March. In April, increasing prices for prepared animal feeds; refined sugar and byproducts; beef and veal; pork; soft drink beverage bases; and dry, condensed, and evaporated milk products outweighed decreasing prices for fluid milk products; flour; confectionery materials; processed young chickens; and natural, processed, and imitation cheese.

The index for materials for nondurable manufacturing edged down 0.1 percent in April, compared with a 1.6-percent jump in March. Prices for liquid refinery gases fell 3.6 percent in April, following a 5.8-percent gain in the prior month. The indexes for plastic resins and materials, processed yarns and threads, alkalies and chlorine, and finished fabrics also turned down, after rising in March. Prices for intermediate basic organic chemicals, inedible fats and oils, and paper advanced less in April than they did in the preceding month. By contrast, the fertilizer materials index moved up 2.2 percent, after declining 2.0 percent in March. Prices for gray fabrics and paint materials also turned up in April.

The index for materials and components for construction inched down 0.1 percent, following a 0.2-percent increase in March. Prices for building paper and board dropped 6.8 percent in April, after rising 2.9 percent a month earlier. The indexes for fabricated structural metal products, asphalt felts and coatings, softwood lumber, and millwork also moved down, following advances in March. Prices for plastic construction products, concrete products, and nonferrous wire and cable climbed at slower rates than they did in the prior month. Conversely, the steel mill products index declined 1.8 percent in April, compared with a 3.2-percent decrease in March. Prices for metal valves (except fluid power), paving mixtures and blocks, and cement moved up, after falling in the preceding month. The wiring devices index went up more in April than it did a month earlier.

Prices for materials for durable manufacturing were unchanged in April, after moving down 0.6 percent in March. The index for aluminum mill shapes rose 1.7 percent, following a 1.5-percent decline in the previous month. Prices for cold rolled steel sheet and strip and cement also turned up, after falling a month earlier. The indexes for titanium mill shapes and for hot rolled steel bars, plates, and structural shapes decreased less in April than they did in March, while flat glass prices increased more than they did in the preceding month. By contrast, the index for semifinished steel mill products dropped 10.3 percent, following a 1.7- percent decline in March. Prices for cold finished steel bars also fell more in April than they did in the prior month. The indexes for primary aluminum (except extrusion billet), building paper and board, and for copper and brass mill shapes moved down, after advancing in March.

Crude goods

The Producer Price Index for Crude Materials for Further Processing gained 2.7 percent in April, following a 4.3-percent increase in March. April price increases for crude energy materials and basic industrial materials more than offset price decreases for crude foodstuffs and feedstuffs. (See table B.)

The index for crude energy materials rose 7.2 percent in April, following a 5.5-percent increase in March. The majority of this acceleration was due to natural gas prices, which jumped 18.1 percent after declining 1.4 percent in March. The coal index increased 2.8 percent, after posting a 0.8-percent rise a month earlier. By contrast, the index for crude petroleum fell 6.3 percent in April, subsequent to a 17.8-percent gain in March. (See table 2.)

Prices for crude nonfood materials less energy advanced 0.8 percent in April, after rising 1.0 percent in March. In April, the index for iron and steel scrap climbed 8.0 percent. Prices for copper ores; aluminum base scrap; copper base scrap; construction sand, gravel, and crushed stone; and softwood logs, bolts, and timber also increased in April. Conversely, prices for wastepaper, gold ores, hides and skins, pulpwood, and raw cotton decreased in April.

Prices for crude foodstuffs and feedstuffs fell 2.3 percent in April, after rising 4.7 percent in March. The soybean index declined 8.5 percent, following a 22.6-percent gain in March. Prices for corn, fluid milk, slaughter broilers and fryers, slaughter hogs, and wheat also turned down in April, after rising a month earlier. The slaughter cattle, fresh and dry vegetables, raw cane sugar and byproducts, alfalfa hay, and unprocessed shellfish indexes increased less in April compared to the prior month. By contrast, the index for fresh fruits and melons gained 5.7 percent, following a 6.2-percent decline in March. Prices for slaughter turkeys fell less in April than they did 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 Mining Industries rose 5.5 percent in April, following a 4.5-percent gain in March. (Net output price indexes are not seasonally adjusted.) Much of this acceleration can be attributed to prices received by the natural gas liquid extraction industry, which increased 9.5 percent after posting a 4.0- percent rise in the previous month. The industry indexes for bituminous coal underground mining, oil and gas operations support activities, and iron ore mining turned up in April, following declines a month earlier. Prices received by the crushed and broken limestone mining and quarrying industry rose, after showing no change in the prior month. By contrast, the index for the gold ore mining industry fell 3.4 percent in April, compared with a 5.2-percent advance in March. Prices paid to the industries for oil and gas well drilling, crude petroleum and natural gas extraction, bituminous coal and lignite surface mining, and for copper ore and nickel ore mining rose less in April than they did in the preceding month. In April, the Producer Price Index for Total Mining Industries was 183.0 (December 1984=100), 29.9 percent above its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries gained 0.5 percent in April, following a 1.2- percent advance in March. This deceleration was primarily due to prices received by the petroleum and coal products manufacturing industry group, which rose 3.7 percent after jumping 11.6 percent in the prior month. The industry group index for wood products manufacturing turned down, compared with an increase in March. Prices received by the industry groups for food manufacturing and machinery manufacturing advanced less in April than they did a month earlier. Alternatively, the industry group index for transportation equipment inched up 0.1 percent, after dipping 0.1 percent in the previous month. The industry group indexes for fabricated metal products and nonmetallic mineral products increased more in April than they did in the prior month. Prices received by furniture and related products manufacturers turned up, compared with decreases in the preceding month, while the industry group index for primary metal manufacturing declined less than it did in March. In April, the Producer Price Index for Total Manufacturing Industries was 149.7 (December 1984=100), 5.6 percent above its year-ago level.

Services. Among services industries in April, prices received by commercial bankers advanced 9.3 percent, after declining 6.1 percent in March. The industry indexes for investment banking and securities dealing, savings institutions, cellular and other wireless carriers, and hotels (excluding casino hotels) and motels also turned up, following decreases in the preceding month. Prices received by direct life insurance carriers increased, after showing no change in March. By contrast, prices received by the scheduled passenger air transportation industry fell 1.1 percent in April, following a 3.3-percent gain a month earlier. Prices received by direct health and medical insurance carriers and the local general freight trucking industry increased at slower rates in April than they did in March. The industry indexes for casino hotels, passenger car rental, and medical laboratories turned down in April, after increasing in the prior month. The industry index for portfolio management fell, compared with no change in March.