January 2013 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 0.2 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Prices for finished goods declined 0.3 percent in December and 0.4 percent in November. At the earlier stages of processing, the index for intermediate goods was unchanged in January, and crude goods prices increased 0.8 percent. On an unadjusted basis, the finished goods index advanced 1.4 percent for the 12 months ended January 2013. (See table A.)

Stage-of-Processing Analysis

Finished goods

In January, over three quarters of the rise in finished goods prices can be attributed to the index for finished consumer foods, which advanced 0.7 percent. Also contributing to the increase in finished goods prices, the index for finished goods less foods and energy rose 0.2 percent. By contrast, prices for finished energy goods fell 0.4 percent.

Finished foods: The index for finished consumer foods rose 0.7 percent in January after a 0.8- percent decline in December. This advance was led by a 39.0-percent jump in prices for fresh and dry vegetables. Increases in the indexes for soft drinks and for candy and nuts also contributed to higher prices for finished consumer foods. (See table 2.)

Finished core: Prices for finished goods less foods and energy moved up 0.2 percent in January, the third straight increase. Most of the January advance can be traced to a 2.5-percent rise in the index for pharmaceutical preparations. Higher prices for communication and related equipment also contributed to the increase in the finished core index.

Finished energy: The index for finished energy goods moved down 0.4 percent in January, the fourth straight decrease. The January decline is mostly attributable to prices for gasoline, which fell 2.1 percent.

Intermediate goods

The Producer Price Index for intermediate materials, supplies, and components was unchanged in January after edging up 0.1 percent in December. In January, a 0.3-percent rise in prices for intermediate goods less foods and energy offset declines of 1.3 percent for the intermediate foods and feeds index and 0.3 percent for intermediate energy goods prices. For the 12 months ended in January, the intermediate goods index increased 0.4 percent. (See table B.)

Intermediate core: Prices for intermediate goods less foods and energy moved up 0.3 percent in January, the same as in December. About thirty percent of the January rise can be traced to the index for primary basic organic chemicals, which climbed 2.0 percent. Higher prices for thermoplastic resins and materials and for lumber also contributed to the increase in the intermediate core index. (See table 2.)

Intermediate foods: The index for intermediate foods and feeds fell 1.3 percent in January, the largest decrease since a 1.3-percent drop in October 2011. Over half of the January decline is attributable to prices for prepared animal feeds, which moved down 3.1 percent. A decrease in the index for processed eggs also was a factor in the decline in the intermediate foods index.

Intermediate energy: Prices for intermediate energy goods fell 0.3 percent in January after no change in December. Leading this decline, the index for industrial electric power decreased 6.5 percent.

Crude goods

The Producer Price Index for crude materials for further processing moved up 0.8 percent in January. For the 3 months ended in January, crude materials prices rose 2.6 percent following a 6.4-percent advance from July to October. The January monthly increase is attributable to the crude energy materials index, which climbed 2.3 percent. By contrast, prices for crude foodstuffs and feedstuffs and for crude nonfood materials less energy declined 0.4 percent and 0.3 percent, respectively. (See table B.)

Crude energy: The index for crude energy materials increased 2.3 percent in January. For the 3- month period ended in January, prices for crude energy materials moved up 4.7 percent subsequent to a 9.5- percent jump for the 3 months ended October 2012. In January, the monthly advance in the crude energy index was the result of prices for crude petroleum, which climbed 8.1 percent. (See table 2.)

Crude foods: The index for crude foodstuffs and feedstuffs moved down 0.4 percent in January. From October to January, prices for crude foods rose 0.7 percent after increasing 6.4 percent in the 3 months ended October 2012. Leading the January monthly decline, the oilseeds index fell 7.0 percent. Lower prices for corn also were a factor in the decrease in the crude foodstuffs and feedstuffs index.

Crude core: The index for crude nonfood materials less energy declined 0.3 percent in January. For the 3 months ended in January, crude core prices moved up 2.4 percent following a 1.8- percent rise from July to October. Leading the January monthly decrease, the index for nonferrous scrap moved down 2.3 percent. Lower prices for gold ores also contributed to the decline in the crude core index.

Services Analysis

Trade industries: The Producer Price Index for the net output of total trade industries declined 1.1 percent in January, the largest decrease since a 1.4-percent drop in June 2010. (Trade indexes measure changes in margins received by wholesalers and retailers.) Most of the January decline can be traced to a 22.2-percent drop in margins received by clothing stores. Lower margins received by gasoline stations and discount department stores also were factors in the decrease in the total trade industries index.

Transportation and warehousing industries: The Producer Price Index for the net output of transportation and warehousing industries jumped 1.0 percent in January, the largest advance since a 1.0-percent climb in March 2012. Leading the January rise was the index for couriers and express delivery services, which increased 5.0 percent. Higher prices received by the scheduled air transportation industry group and line-haul railroads also contributed to the advance in the transportation and warehousing industries index.

Services less trade, transportation, and warehousing: The Producer Price Index for the net output of services less trade, transportation, and warehousing moved up 0.5 percent in January after decreasing 0.3 percent in December. Over twenty percent of the January advance can be attributed to a 1.4-percent rise in prices received by the depository credit intermediation industry group. Increases in the indexes for offices of lawyers and portfolio management also were factors in the gain in the services less trade, transportation, and warehousing index.

Resampling of Industries

Effective with this release, the Producer Price Index (PPI) includes data for 37 resampled industries and 1 newly introduced industry classified according to the 2012 North American Industry Classification System (NAICS). The Bureau of Labor Statistics periodically updates the sample of producers providing data for the PPI to reflect current conditions more accurately when the structure, membership, technology, or product mix of an industry shifts. The first results of this systematic process were published in July 1986. Subsequent efforts have been completed at 6-month intervals.

Industries selected for resampling in January 2013 are noted below. For information on specific index additions, deletions, and recodes effective this month, see the January 2013 issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201301.pdf, or contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

NAICS Code Industry 212210 Iron ore mining 212321 Construction sand and gravel mining 212322 Industrial sand mining 212393 Other chemical and fertilizer mineral mining 213113 Support activities for coal mining 236224 New health care building construction* 311412 Frozen specialty food manufacturing 311511 Fluid milk manufacturing 311941 Mayonnaise, dressing, and sauce manufacturing 321211 Hardwood veneer and plywood manufacturing 321912 Cut stock, resawing lumber, and planing 324122 Asphalt shingle and coating materials manufacturing 325510 Paint and coating manufacturing 325992 Photographic film and chemical manufacturing 326140 Polystyrene foam product manufacturing 326150 Urethane and other foam product manufacturing 327213 Glass container manufacturing 331318 Other aluminum rolling, drawing, and extruding 331410 Nonferrous metal (except aluminum) smelting and refining 331513 Steel foundries, except investment 332991 Ball and roller bearing manufacturing 333241 Food product machinery manufacturing 333613 Mechanical power transmission equipment manufacturing 334418 Printed circuit assembly manufacturing 334419 Other electronic component manufacturing 335991 Carbon and graphite product manufacturing 336390 Other motor vehicle parts manufacturing 337110 Wood kitchen cabinet and countertop manufacturing 337214 Office furniture, except wood, manufacturing 339114 Dental equipment and supplies manufacturing 447110 Gasoline stations with convenience stores 454310 Fuel dealers 486110 Pipeline transportation of crude oil 486910 Refined petroleum product pipeline transportation 491110 U.S. Postal Service 511140 Directory and mailing list publishers 511199 All other publishers 621610 Home health care services

* For further discussion of this newly introduced PPI, see the January 2013 issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201301.pdf.

Recalculation of Seasonal Adjustment Factors

Effective with this release, seasonal adjustment factors have been recalculated to reflect price- movement patterns during 2012 for stage-of-processing (SOP) and commodity-grouping indexes. This routine annual recalculation may affect previously published seasonally adjusted indexes and percent changes for January 2008 through December 2012. Revised seasonally adjusted data for this period, as well as seasonal adjustment factors for commodity indexes to be used through December 2013, were released February 15, 2013. To obtain this information, contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705, or visit the Producer Price Index homepage at www.bls.gov/ppi.

The table below provides monthly seasonally adjusted percent changes for the three major SOP categories during 2012, based on former and recalculated seasonal factors. These percent changes include final price data through August 2012 and may differ from values shown in tables A and B of this release, which include final price data through September 2012.

Finished Goods Intermediate Goods Crude Goods Month Former Recalculated Former Recalculated Former Recalculated