April 2006 Producer Price Index

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The Producer Price Index for Finished Goods advanced 0.9 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This gain followed a 0.5-percent rise in March and a 1.4-percent decline in February. The index for finished goods other than foods and energy rose 0.1 percent, the same rate of increase as in the previous month. At the earlier stages of processing, prices for intermediate goods moved up 0.9 percent in April, after edging down 0.1 percent in the prior month, while the crude goods index increased 1.2 percent, following a 2.7-percent decrease in March. (See table A.)

Among finished goods, prices for energy goods advanced 4.0 percent in April, after rising 1.8 percent in the preceding month. The index for capital equipment climbed 0.2 percent, following a 0.1-percent gain in the previous month. Conversely, price increases for finished consumer foods slowed from 0.5 percent in March to 0.1 percent in April. The index for finished consumer goods excluding foods and energy inched up 0.1 percent, compared with a 0.2-percent rise a month earlier.

Before seasonal adjustment, the Producer Price Index for Finished Goods advanced 1.0 percent in April to 160.6 (1982 = 100). From April 2005 to April 2006, prices for finished goods rose 4.0 percent. Over the same period, the finished energy goods index increased 18.0 percent, prices for finished goods other than foods and energy moved up 1.5 percent, and the finished consumer foods index fell 1.3 percent. For the 12 months ended April 2006, prices for intermediate goods rose 7.3 percent, while the crude goods index climbed 3.4 percent.

Finished goods

Prices for finished energy goods increased 4.0 percent in April, following a 1.8-percent gain in the prior month. The home heating oil index jumped 13.7 percent, after falling 3.6 percent in the preceding month. Prices for liquefied petroleum gas, residential electric power, and diesel fuel also turned up in April, while the indexes for gasoline and kerosene increased at quicker rates than they had in March. By contrast, residential natural gas prices decreased 3.0 percent in April, compared with a 0.5-percent decline in the previous month. (See table 2.)

The capital equipment index climbed 0.2 percent in April, following a 0.1-percent increase in the preceding month. In April, rising prices for civilian aircraft, communication and related equipment, truck trailers, industrial material handling equipment, and integrating and measuring instruments more than offset falling prices for passenger cars, electronic computers, construction machinery and equipment, and heavy motor trucks.

The finished consumer foods index inched up 0.1 percent in April, subsequent to a 0.5-percent gain in the prior month. Prices for eggs for fresh use increased 2.4 percent, after surging 29.2 percent in March. The index for finfish and shellfish also rose less than it had in the previous month, while pork prices turned down in April. The indexes for beef and veal and for processed young chickens decreased at quicker rates than they had a month earlier. Alternatively, prices for fresh and dry vegetables jumped 18.1 percent in April, compared with a 3.7-percent increase in the preceding month. The indexes for fresh fruits and melons and for processed fruits and vegetables also rose more than they had in March, while prices for dairy products fell less than in the prior month.

The index for finished consumer goods excluding foods and energy went up 0.1 percent in April, following a 0.2-percent increase in March. In April, rising prices for alcoholic beverages, mobile homes, household furniture, book publishing, and sporting and athletic goods slightly outweighed falling prices for passenger cars; periodical circulation; women's, girls', and infants' apparel; and sanitary paper products.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 0.9 percent in April, after edging down 0.1 percent in March. Prices for energy goods as well as materials for nondurable manufacturing turned up in April, while the index for materials for durable manufacturing rose more than in the prior month. Conversely, prices for intermediate foods and feeds declined more in April than in the previous month. The index for materials and components for construction rose at the same rate as a month earlier. Excluding foods and energy, prices for intermediate goods moved up 0.4 percent, following a 0.1-percent gain in March. (See table B.)

The index for intermediate energy goods increased 2.8 percent in April, compared with a 0.9-percent decline a month earlier. Jet fuel price increases accelerated to 18.1 percent from 0.2 percent in March. Prices for gasoline also rose more than in the previous month. The indexes for diesel fuel, home heating oil, and industrial electric power turned up, following declines in the prior month. Industrial natural gas prices fell less than they had in March. Alternatively, the index for commercial natural gas dropped 4.3 percent in April, after falling 3.3 percent in the preceding month. Prices for residual fuel also decreased more than they had in March. (See table 2.)

The index for materials for durable manufacturing increased 1.6 percent in April, following a 0.3-percent advance in the previous month. Leading this acceleration, prices for primary nonferrous metals rose 5.9 percent, after a 0.5-percent gain in March. The indexes for copper and brass mill shapes, cold rolled steel sheet and strip, and aluminum mill shapes also increased at faster rates in April than they had a month earlier. Prices for titanium mill shapes and hardwood lumber turned up, and the index for hot rolled steel bars, plates, and structural shapes fell less than in March. By contrast, the index for semifinished steel mill products declined 4.8 percent in April, following a 1.8-percent increase in the prior month. Prices for prepared paint and secondary aluminum also turned down, after climbing in March.

Subsequent to a 0.6-percent decline in March, prices for materials for nondurable manufacturing inched up 0.1 percent in April. The industrial chemicals index turned up 1.5 percent, after falling at the same rate in the prior month. The index for nitrogenates fell at a slower rate in April than it had a month earlier, while prices for paint materials turned up, from March declines. By contrast, the index for plastic resins and materials moved down 2.0 percent in April, following a 1.3-percent decrease in the previous month. Prices for inedible fats and oils and for phosphates turned down in April, while the stemmed and redried tobacco index fell, after remaining unchanged in March. Paper prices rose less than they had a month earlier.

Prices for intermediate foods and feeds fell 0.7 percent in April, after declining 0.3 percent in March. The prepared animal feeds index decreased 0.8 percent, after climbing 0.7 percent in the prior month. Pork prices also turned down, following advances in March. The indexes for beef and veal and for natural, processed, and imitation cheese fell more in April, while prices for shortening and cooking oils rose less than they had a month earlier. Alternatively, flour prices advanced 5.0 percent, following a 1.1-percent decline in the preceding month. The indexes for refined sugar and byproducts and for confectionery materials increased at faster rates than they had in the prior month, while prices for dry, condensed, and evaporated milk products fell less than in March.

The index for materials and components for construction advanced 0.4 percent, the same rate of increase as in March. In April, rising prices for nonferrous wire and cable, concrete products, paving mixtures and blocks, fabricated structural metal products, steel mill products, and building paper and board outweighed declining prices for plastic construction products, softwood lumber, and treated wood.

Crude goods

The Producer Price Index for Crude Materials for Further Processing advanced 1.2 percent in April, following a 2.7-percent decrease in March. Prices for crude energy materials turned up, after falling in the preceding month. The index for crude nonfood materials less energy rose more in April than in March, and the rate of decline in crude foodstuffs and feedstuffs prices slowed from the prior month. (See table B.)

The index for crude energy materials climbed 1.3 percent, following a 4.5-percent decrease in March. Crude petroleum prices jumped 10.3 percent in April, after rising 5.2 percent a month earlier. The natural gas index went down 5.5 percent, following an 11.5-percent drop in the previous month. Coal prices rose more in April than they had in March, 1.0 percent and 0.8 percent, respectively. (See table 2.)

The index for crude nonfood materials less energy increased 4.7 percent in April, following a 0.8-percent advance a month earlier. Prices for iron and steel scrap moved up 5.9 percent, after rising 1.5 percent in the prior month. The indexes for copper base scrap and raw cotton also went up more in April than they had in March. Prices for gold ores, aluminum base scrap, and wastepaper turned up, following declines in the previous month. By contrast, the rate of increase in the index for construction sand, gravel, and crushed stone slowed to 0.4 percent in April from 1.1 percent a month earlier, while prices for phosphates turned down, after climbing in March.

The index for crude foodstuffs and feedstuffs fell 1.4 percent in April, following a 2.2-percent decline in March. Prices for fluid milk decreased 6.4 percent, after moving down 7.8 percent in the preceding month. The indexes for corn, wheat, and fresh fruits and melons rose more than they had in March, while prices for fresh vegetables (except potatoes) and alfalfa hay turned up in April. Alternatively, the slaughter hogs index declined 6.4 percent, following a 0.4-percent decrease in March. Prices for slaughter cattle and for slaughter broilers and fryers also fell more in April than they had a month earlier. The index for unprocessed shellfish turned down, after increasing 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 2.3 percent in April, following a 3.0-percent decline in March. (Net output price indexes are not seasonally adjusted.) Prices received by the crude oil and natural gas extraction industry moved up 3.7 percent, after falling 4.8 percent in the previous month. The industry indexes for gold ore mining and bituminous coal underground mining also turned up in April. Prices received by the natural gas liquid extraction industry decreased less than they had in the prior month, while the industry indexes for oil and gas well drilling and for bituminous coal and lignite surface mining rose more than in March. Alternatively, prices paid to the industry for oil and gas support activities advanced 1.3 percent in April, compared with a 4.5-percent rise in March. The industry index for anthracite mining turned down in April. The Producer Price Index for Total Mining Industries was 205.6 in April (December 1984 = 100), 11.6 percent above its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries increased 1.4 percent in April, following a 0.9- percent gain in March. The majority of this acceleration can be attributed to prices received by manufacturers of petroleum and coal products, which increased 12.0 percent subsequent to a 7.9-percent rise in the previous month. The industry group indexes for electrical equipment and appliances, primary metals, and fabricated metal products also increased more than they had in March, while the prices paid to manufacturers of chemical products fell less than a month earlier. By contrast, prices received by food manufacturers decreased 0.6 percent in April, after edging down 0.1 percent in the prior month. The industry group index for paper manufacturing advanced less than it had in March. Prices paid to machinery manufacturers were unchanged, after increasing in the preceding month, while the index for the printing and related support activities industry group turned down, after rising a month earlier. In April, the Producer Price Index for Total Manufacturing Industries was 157.1 (December 1984 = 100), 5.0 percent above its year-ago level.

Services. Among services industries in April, prices received by commercial bankers advanced 12.5 percent, after declining 8.9 percent in March. The industry indexes for investment banking and security dealing, savings institutions, portfolio management, and lessors of nonresidential buildings (excluding miniwarehouses) also turned up, following decreases in the prior month. Prices received by direct health and medical insurance carriers rose more than they had a month earlier. By contrast, prices received by the scheduled passenger air transportation industry fell 2.3 percent, following a 4.7-percent gain in March. Similarly, the industry indexes for casino hotels and offices of physicians turned down in April.