February 2022 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 0.8 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 1.2 percent in January and 0.4 percent in December 2021. (See table A.) On an unadjusted basis, final demand prices moved up 10.0 percent for the 12 months ended in February.

In February, the advance in the index for final demand can be attributed to prices for final demand goods, which rose 2.4 percent. The index for final demand services was unchanged.

Prices for final demand less foods, energy, and trade services rose 0.2 percent in February following a 0.8-percent increase in January. For the 12 months ended in February, the index for final demand less foods, energy, and trade services moved up 6.6 percent.

Final Demand

Final demand goods: Prices for final demand goods jumped 2.4 percent in February, the largest advance since data were first calculated in December 2009. Two-thirds of the broad-based increase can be traced to an 8.2-percent rise in the index for final demand energy. Prices for final demand goods less foods and energy and for final demand foods also moved higher, 0.7 percent and 1.9 percent, respectively.

Product detail: Nearly 40 percent of the February increase in prices for final demand goods can be attributed to the index for gasoline, which rose 14.8 percent. Prices for diesel fuel, electric power, jet fuel, motor vehicles and equipment, and dairy products also advanced. In contrast, the index for fresh and dry vegetables decreased 9.4 percent. Prices for beef and veal and for hot rolled steel sheet and strip also moved lower. (See table 2.)

Final demand services: Prices for final demand services were unchanged in February after a 1.0- percent increase in January. In February, a 1.9-percent rise in the index for final demand transportation and warehousing services and a 0.2-percent advance in margins for final demand trade services offset a 0.4-percent decrease in the index for final demand services less trade, transportation, and warehousing. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Within the index for final demand services in February, prices for truck transportation of freight moved up 2.0 percent. The indexes for food and alcohol retailing, machinery and vehicle wholesaling, transportation of passengers (partial), and outpatient care (partial) also rose. Conversely, prices for portfolio management decreased 4.2 percent. The indexes for guestroom rental; apparel, jewelry, footwear, and accessories retailing; automobile retailing (partial); and residential real estate loans (partial) also declined.

Intermediate Demand by Commodity Type

Within intermediate demand in February, prices for processed goods rose 1.6 percent, the index for unprocessed goods jumped 14.6 percent, and prices for services were unchanged. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand increased 1.6 percent in February after climbing 2.0 percent in January. Leading the broad- based advance in February, prices for processed energy goods rose 7.4 percent. The indexes for processed foods and feeds and for processed materials less foods and energy moved up 1.9 percent and 0.1 percent, respectively. For the 12 months ended in February, prices for processed goods for intermediate demand jumped 23.3 percent.

Product detail: Over 40 percent of the February increase in prices for processed goods for intermediate demand can be attributed to a 14.9-percent rise in the index for diesel fuel. Prices for gasoline, primary basic organic chemicals, commercial electric power, nonferrous metals, and prepared animal feeds also advanced. In contrast, the index for hot rolled steel sheet and strip fell 16.0 percent. Prices for natural gas to electric utilities and for beef and veal also declined.

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate demand moved up 14.6 percent in February, the largest increase since rising 17.4 percent in January 2001. Ninety percent of the broad-based advance in February can be traced to a 32.3-percent jump in the index for unprocessed energy materials. Prices for unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy also moved higher, 3.0 percent and 1.4 percent, respectively. For the 12 months ended in February, the index for unprocessed goods for intermediate demand climbed 35.1 percent.

Product detail: Over two-thirds of the February advance in prices for unprocessed goods for intermediate demand can be attributed to a 65.1-percent jump in the index for natural gas. Prices for crude petroleum; slaughter hogs; hay, hayseeds, and oilseeds; nonferrous scrap; and slaughter cattle also increased. Conversely, the index for raw milk decreased 8.7 percent. Prices for carbon steel scrap and for nonferrous metal ores also moved lower.

Services for intermediate demand: The index for services for intermediate demand was unchanged in February following three consecutive advances. In February, a 0.8-percent increase in margins for trade services for intermediate demand and a 0.6-percent rise in prices for transportation and warehousing services for intermediate demand offset a 0.4-percent decline in the index for services less trade, transportation, and warehousing for intermediate demand. For the 12 months ended in February, prices for services for intermediate demand moved up 7.4 percent.

Product detail: Among prices for services for intermediate demand in February, margins for hardware, building materials, and supplies retailing advanced 6.3 percent. The indexes for machinery and equipment parts and supplies wholesaling; securities brokerage, dealing, and investment advice; truck transportation of freight; and paper and plastics products wholesaling also increased. In contrast, prices for gross rents for retail properties fell 6.8 percent. The indexes for portfolio management; loan services (partial); warehousing, storage, and related services; and chemicals and allied products wholesaling also decreased.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand rose 0.5 percent in February after moving up 1.4 percent in January. In February, the index for total goods inputs to stage 4 intermediate demand increased 1.3 percent. Conversely, prices for total services inputs fell 0.2 percent. (See table D.) Advances in the indexes for gasoline; diesel fuel; machinery and equipment parts and supplies wholesaling; commercial electric power; securities brokerage, dealing, and investment advice; and hardware, building materials, and supplies retailing outweighed declining prices for portfolio management, gross rents for retail properties, and hot rolled steel sheet and strip. For the 12 months ended in February, the index for stage 4 intermediate demand climbed 12.4 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand increased 1.0 percent in February following a 1.5-percent rise in January. In February, the index for total goods inputs to stage 3 intermediate demand advanced 1.8 percent, and prices for total services inputs edged up 0.1 percent. Increases in the indexes for diesel fuel, slaughter hogs, jet fuel, primary basic organic chemicals, gasoline, and arrangement of freight and cargo transportation outweighed decreasing prices for hot rolled steel sheet and strip, raw milk, and gross rents for retail properties. For the 12 months ended in February, the index for stage 3 intermediate demand jumped 18.4 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand increased 6.5 percent in February after two consecutive declines. In February, prices for total goods inputs to stage 2 intermediate demand surged 13.5 percent. In contrast, the index for total services inputs inched down 0.1 percent. Rising prices for gas fuels, crude petroleum, oilseeds, primary basic organic chemicals, nonferrous scrap, and arrangement of freight and cargo transportation outweighed decreases in the indexes for loan services (partial), ethanol, and cold rolled steel sheet and strip. For the 12 months ended in February, prices for stage 2 intermediate demand advanced 19.6 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand moved up 0.9 percent in February following a 1.2-percent increase in January. In February, the index for total goods inputs to stage 1 intermediate demand rose 1.7 percent. Prices for total services inputs were unchanged. Advances in the indexes for diesel fuel; hardware, building materials, and supplies retailing; gasoline; primary basic organic chemicals; commercial electric power; and securities brokerage, dealing, and investment advice outweighed falling prices for hot rolled steel sheet and strip, cold rolled steel sheet and strip, and gross rents for retail properties. For the 12 months ended in February, the index for stage 1 intermediate demand climbed 16.4 percent.

Resampling of Industries

Effective with the release of data for February 2022, the Producer Price Index (PPI) includes data for 10 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 February 2022, see the current issue of the PPI Detailed Report online at www.bls.gov/ppi/detailed-report/ or contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691- 7705.

NAICS Code Industry 311423 Dried and dehydrated food manufacturing 321211 Hardwood veneer and plywood manufacturing 321918 Other millwork, including flooring 327212 Other pressed and blown glass and glassware 331491 Nonferrous metal (except copper and aluminum) rolling, drawing, and extruding 332993 Ammunition manufacturing (except small arms), more than 30 mm. 33441K Capacitor, resistor, coil, transformer, and other inductor manufacturing 336214 Travel trailer and camper manufacturing 336370 Motor vehicle metal stamping 621111 Offices of physicians, except mental health