June 2021 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 final demand increased 1.0 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.8 percent in May and 0.6 percent in April. (See table A.) On an unadjusted basis, the final demand index moved up 7.3 percent for the 12 months ended in June, the largest advance since 12-month data were first calculated in November 2010.

Nearly 60 percent of the June advance in the final demand index can be traced to a 0.8-percent increase in prices for final demand services. The index for final demand goods moved up 1.2 percent.

Prices for final demand less foods, energy, and trade services rose 0.5 percent in June following an increase of 0.7 percent in May. For the 12 months ended in June, the index for final demand less foods, energy, and trade services moved up 5.5 percent, the largest advance since 12-month data were first calculated in August 2014.

Final Demand

Final demand services: Prices for final demand services rose 0.8 percent in June, the sixth consecutive advance. Seventy percent of the broad-based increase in June is attributable to margins for final demand trade services, which moved up 2.1 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) The indexes for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services rose 0.3 percent and 0.9 percent, respectively.

Product detail: Twenty percent of the June increase in the index for final demand services can be traced to margins for automobiles and automobile parts retailing, which rose 10.5 percent. The indexes for machinery and vehicle wholesaling; hardware, building materials, and supplies retailing; guestroom rental; professional and commercial equipment wholesaling; and transportation of passengers (partial) also moved higher. Conversely, margins for apparel wholesaling fell 6.0 percent. The indexes for machinery and equipment parts and supplies wholesaling and for gaming receipts (partial) also declined. (See table 4.)

Final demand goods: Prices for final demand goods increased 1.2 percent in June after rising 1.5 percent in May. Nearly 60 percent of the broad-based advance in June can be traced to the index for final demand goods less foods and energy, which moved up 1.0 percent. Prices for final demand energy and for final demand foods rose 2.1 percent and 0.8 percent, respectively.

Product detail: Within the index for final demand goods in June, prices for industrial chemicals rose 4.5 percent. Prices for gasoline, meats, electric power, processed poultry, and motor vehicles also moved higher. In contrast, the index for oilseeds fell 11.7 percent. Prices for diesel fuel and for distilled and bottled liquor (excluding brandy) also declined.

Intermediate Demand by Commodity Type

Within intermediate demand in June, prices for processed goods rose 1.9 percent, the index for unprocessed goods increased 2.6 percent, and prices for services advanced 1.1 percent. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand moved up 1.9 percent in June following a 2.8-percent rise in May. Leading the broad-based increase in June, prices for processed materials less foods and energy advanced 2.3 percent. The indexes for processed foods and feeds and for processed energy goods moved up 1.7 percent and 0.2 percent, respectively. For the 12 months ended in June, prices for processed goods for intermediate demand jumped 22.6 percent, the largest increase since rising 23.6 percent for the 12 months ended in February 1975.

Product detail: Nearly one-fifth of the June advance in the index for processed goods for intermediate demand can be traced to a 6.2-percent increase in prices for steel mill products. The indexes for industrial chemicals, electric power, fabricated structural metal products, plastic resins and materials, and meats also moved higher. Conversely, prices for natural gas to electric utilities dropped 18.9 percent. The indexes for primary nonferrous metals and for natural, processed, and imitation cheese also decreased. (See table 5.)

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate demand rose 2.6 percent in June following an 8.4-percent increase in May. Eighty percent of the broad-based advance in June can be attributed to the index for unprocessed energy materials, which moved up 5.8 percent. Prices for unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy rose 0.7 percent and 0.9 percent, respectively. For the 12 months ended in June, the index for unprocessed goods for intermediate demand jumped 54.1 percent.

Product detail: Seventy percent of the June advance in prices for unprocessed goods for intermediate demand can be traced to a 9.9-percent jump in the index for crude petroleum. Prices for slaughter cattle, iron and steel, raw milk, slaughter poultry, and natural gas also moved up. In contrast, the index for corn fell 9.0 percent. Prices for oilseeds and for copper base scrap also decreased.

Services for intermediate demand: The index for services for intermediate demand rose 1.1 percent in June, the seventh consecutive increase. Half of the broad-based advance in June can be attributed to margins for trade services for intermediate demand, which jumped 2.5 percent. Prices for services less trade, transportation, and warehousing for intermediate demand and for transportation and warehousing services for intermediate demand rose 0.4 percent and 2.1 percent, respectively. For the 12 months ended in June, the index for services for intermediate demand increased 8.7 percent, the largest advance since 12-month data were first calculated in November 2010.

Product detail: Thirty percent of the June increase in prices for services for intermediate demand can be traced to margins for metals, minerals, and ores wholesaling, which rose 13.9 percent. The indexes for hardware, building materials, and supplies retailing; arrangement of freight and cargo transportation; television advertising time sales; residential property management fees; and deposit services (partial) also moved higher. Conversely, margins for machinery and equipment parts and supplies wholesaling fell 1.6 percent. The indexes for temporary help services and for securities brokerage, dealing, and investment advice also declined.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand advanced 1.1 percent in June following a 1.5-percent increase in May. In June, the index for total goods inputs to stage 4 intermediate demand rose 1.5 percent, and prices for total services inputs moved up 0.6 percent. (See table D.) Increases in the indexes for fabricated structural metal products; metals, minerals, and ores wholesaling; steel mill products; commercial electric power; hardware, building materials, and supplies retailing; and plastic products outweighed declines in the indexes for machinery and equipment parts and supplies wholesaling, corn, and natural gas to electric utilities. (See table 6.) For the 12 months ended in June, prices for stage 4 intermediate demand jumped 11.7 percent, the largest advance since 12-month data were first calculated in November 2010.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand increased 2.1 percent in June, the same as in May. In June, the index for total goods inputs to stage 3 intermediate demand rose 2.4 percent, and prices for total services inputs moved up 1.6 percent. Advances in the indexes for steel mill products; metals, minerals, and ores wholesaling; arrangement of freight and cargo transportation; slaughter cattle; raw milk; and plastic resins and materials outweighed decreasing prices for corn, diesel fuel, and temporary help services. For the 12 months ended in June, the index for stage 3 intermediate demand jumped 20.4 percent, the largest increase since 12-month data were first calculated in November 2010.

Stage 2 intermediate demand: The index for stage 2 intermediate demand advanced 2.1 percent in June following a 3.1-percent rise in May. In June, prices for total goods inputs to stage 2 intermediate demand increased 3.2 percent, and the index for total services inputs moved up 1.1 percent. Higher prices for crude petroleum; industrial chemicals; arrangement of freight and cargo transportation; gas fuels; maintenance and repair of nonresidential buildings (partial); and broadcast and network advertising time sales outweighed decreases in the indexes for oilseeds, primary nonferrous metals, and temporary help services. For the 12 months ended in June, prices for stage 2 intermediate demand jumped 21.8 percent, the largest rise since 12-month data were first calculated in November 2010.

Stage 1 intermediate demand: The index for stage 1 intermediate demand increased 1.6 percent in June following a 2.6-percent rise in May. In June, prices for total services inputs to stage 1 intermediate demand advanced 1.7 percent, and the index for total goods inputs moved up 1.6 percent. Increases in the indexes for metals, minerals, and ores wholesaling; hardware, building materials, and supplies retailing; industrial chemicals; steel mill products; fabricated structural metal products; and iron and steel scrap outweighed falling prices for natural gas to electric utilities, corn, and machinery and equipment parts and supplies wholesaling. For the 12 months ended in June, the index for stage 1 intermediate demand jumped 21.2 percent.

Resampling of Industries

Effective with the release of data for June 2021, the Producer Price Index (PPI) includes data for 19 resampled industries classified according to the 2017 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 regular intervals.

For information on index additions, deletions, and recodes effective June 2021, see the current issue of the PPI Detailed Report online at www.bls.gov/ppi/detailed-report/ppi-detailed-report- june-2021.pdf, or contact the PPI Section of Index Analysis and Public Information at ppi- info@bls.gov or (202) 691-7705.

NAICS Code Industry 236211 New industrial building construction 311340 Nonchocolate confectionery manufacturing 316992 Women's handbag and purse manufacturing 322110 Pulp mills 322130 Paperboard mills 322212 Folding paperboard box manufacturing 332410 Power boiler and heat exchanger manufacturing 332420 Metal tank, heavy gauge, manufacturing 332919 Other metal valve and pipe fitting manufacturing 333242 Semiconductor machinery manufacturing 333613 Mechanical power transmission equipment manufacturing 333923 Overhead cranes, hoists, and monorail systems manufacturing 334220 Broadcast and wireless communications equipment manufacturing 335210 Small electrical appliance manufacturing 336212 Truck trailer manufacturing 336411 Aircraft manufacturing 337910 Mattress manufacturing 424800 Beer, wine, and distilled alcoholic beverage merchant wholesalers 515210 Cable and other subscription programming