November 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 advanced 0.3 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices also rose 0.3 percent in both October and September. (See table A.) On an unadjusted basis, the index for final demand moved up 7.4 percent for the 12 months ended in November.

In November, most of the increase in the index for final demand is attributable to a 0.4-percent advance in prices for final demand services. The index for final demand goods inched up 0.1 percent.

Prices for final demand less foods, energy, and trade services moved up 0.3 percent in November after rising 0.2 percent in October. For the 12 months ended in November, the index for final demand less foods, energy, and trade services increased 4.9 percent.

Final Demand

Final demand services: The index for final demand services advanced 0.4 percent in November after edging up 0.1 percent in October. Leading the November increase, prices for final demand services less trade, transportation, and warehousing climbed 0.4 percent. Margins for final demand trade services rose 0.7 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, prices for final demand transportation and warehousing services declined 0.9 percent.

Product detail: About one-third of the November rise in the index for final demand services can be traced to prices for securities brokerage, dealing, investment advice, and related services, which jumped 11.3 percent. The indexes for machinery and vehicle wholesaling, loan services (partial), fuels and lubricants retailing, portfolio management, and long-distance motor carrying also moved higher. Conversely, prices for transportation of passengers (partial) fell 5.6 percent. The indexes for automobile and automobile parts retailing and for traveler accommodation services also decreased. (See table 2.)

Final demand goods: The index for final demand goods inched up 0.1 percent in November following a 0.6-percent rise in October. A 3.3-percent increase in prices for final demand foods was a major factor in the November advance. The index for final demand goods less foods and energy moved up 0.3 percent. In contrast, prices for final demand energy decreased 3.3 percent.

Product detail: The November advance in prices for final demand goods was led by a 38.1-percent jump in the index for fresh and dry vegetables. Prices for chicken eggs; meats; canned, cooked, smoked, or prepared poultry; and tobacco products also moved higher. Conversely, the gasoline index fell 6.0 percent. Prices for diesel fuel, residential natural gas, and primary basic organic chemicals also declined.

Intermediate Demand by Commodity Type

Within intermediate demand in November, prices for processed goods fell 0.9 percent, the index for unprocessed goods declined 3.2 percent, and prices for services increased 0.6 percent. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand moved down 0.9 percent in November, the fifth consecutive decline. Leading the November decrease, the index for processed energy goods fell 3.7 percent. Prices for processed materials less foods and energy declined 0.2 percent. In contrast, the index for processed foods and feeds advanced 0.7 percent. For the 12 months ended in November, prices for processed goods for intermediate demand rose 7.7 percent.

Product detail: Over one-third of the November decline in the index for processed goods for intermediate demand can be attributed to prices for diesel fuel, which fell 4.5 percent. The indexes for gasoline, steel mill products, utility natural gas, primary basic organic chemicals, and industrial electric power also moved lower. Conversely, prices for meats rose 2.3 percent. The indexes for primary nonferrous metals and for inedible fats and oils also moved higher.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand fell 3.2 percent, the third consecutive decrease. Leading the November decline, prices for unprocessed energy materials moved down 7.8 percent. The index for unprocessed nonfood materials less energy fell 0.7 percent. In contrast, prices for unprocessed foodstuffs and feedstuffs advanced 1.1 percent. For the 12 months ended in November, the index for unprocessed goods for intermediate demand rose 3.0 percent.

Product detail: Leading the decrease in prices for unprocessed goods for intermediate demand, the index for natural gas dropped 15.8 percent. Prices for crude petroleum, corn, hay and hayseeds, citrus fruits, and carbon steel scrap also declined. Conversely, the index for fresh vegetables (except potatoes) jumped 43.1 percent. Prices for raw milk and for nonferrous metal ores also advanced.

Services for intermediate demand: The index for services for intermediate demand increased 0.6 percent in November, the fifth consecutive rise. Leading the November advance, prices for services less trade, transportation, and warehousing for intermediate demand moved up 1.1 percent. The index for trade services for intermediate demand climbed 0.5 percent. In contrast, prices for transportation and warehousing services for intermediate demand fell 1.3 percent. For the 12 months ended in November, the index for services for intermediate demand increased 6.7 percent, the largest 12- month advance since rising 7.9 percent in May.

Product detail: Nearly 60 percent of the November rise in the index for services for intermediate demand can be traced to an 11.3-percent increase in prices for securities brokerage, dealing, investment advice, and related services. The indexes for loan services (partial), portfolio management, fuels and lubricants retailing, cable network advertising time sales, and long-distance motor carrying also advanced. Conversely, prices for arrangement of freight and cargo transportation dropped 15.2 percent. The indexes for broadcast and network television advertising time sales and for metals, minerals, and ores wholesaling also decreased.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand advanced 0.2 percent in November following no change in the previous month. In November, the index for total services inputs to stage 4 intermediate demand increased 0.8 percent. In contrast, prices for total goods inputs declined 0.3 percent. (See table D.) Increases in the indexes for securities brokerage, dealing, investment advice, and related services; loan services (partial); portfolio management; meats; food and alcohol wholesaling; and canned, cooked, smoked, or prepared poultry outweighed declines in prices for electric power, gasoline, and gross rents for retail properties. For the 12 months ended in November, the index for stage 4 intermediate demand rose 6.9 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand declined 0.4 percent in November after edging down 0.1 percent in October. In November, prices for total goods inputs to stage 3 intermediate demand fell 0.9 percent. Conversely, the index for total services inputs rose 0.2 percent. Decreases in prices for diesel fuel, arrangement of freight and cargo transportation, steel mill products, primary basic organic chemicals, corn, and thermoplastic resins and materials outweighed advances in the indexes for loan services (partial), raw milk, and cable network advertising time sales. For the 12 months ended in November, prices for stage 3 intermediate demand rose 8.4 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand declined 1.4 percent in November, the third consecutive decrease. In November, prices for total goods inputs to stage 2 intermediate demand fell 3.4 percent. In contrast, the index for total services inputs advanced 0.6 percent. Decreases in prices for natural gas, crude petroleum, arrangement of freight and cargo transportation, broadcast and network television advertising time sales, primary basic organic chemicals, and transportation of passengers (partial) outweighed increases in the indexes for loan services (partial); securities brokerage, dealing, investment advice, and related services; and oilseeds. For the 12 months ended in November, prices for stage 2 intermediate demand rose 3.8 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand declined 0.3 percent in November following a 0.1-percent rise in October. In November, prices for total goods inputs to stage 1 intermediate demand fell 1.2 percent. Conversely, the index for total services inputs advanced 0.7 percent. Decreases in prices for diesel fuel, utility natural gas, steel mill products, transportation of passengers (partial), primary basic organic chemicals, and gasoline outweighed increases in the indexes for securities brokerage, dealing, investment advice, and related services; fuels and lubricants retailing; and inedible fats and oils. For the 12 months ended in November, prices for stage 1 intermediate demand moved up 7.6 percent.

Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be Available on February 14, 2023

Each year with the release of PPI data for January, seasonal adjustment factors and relative importance figures are recalculated to reflect price movements from the just-completed calendar year. The following information relating to the seasonal-factor update will be available on February 14, 2023 (2 workdays prior to the release of PPI data for January 2023 on February 16, 2023):

* Direct seasonal factors for PPI commodity indexes for the year 2023, * Recalculated seasonal factors for the last 5 years (2018-2022) for PPI commodity indexes, * Recalculated seasonal factors for the last 5 years (2018-2022) for PPI Final Demand- Intermediate Demand indexes, * Recalculated seasonal index data for the last 5 years (2018-2022) for Final Demand- Intermediate Demand and commodity indexes. This revision to seasonally adjusted indexes for the previous 5 years will be posted to the PPI database on the BLS website.

In addition, the following relative importance tables, which include values for December 2022, will be available on February 14, 2023:

* Final demand by individual commodities * Final demand by component series * Individual commodities of intermediate demand by commodity type * Component series of intermediate demand by commodity type * Individual commodities of intermediate demand by production flow * Component series of intermediate demand by production flow * Commodities, all levels * Wherever-provided services and construction

This information will be available on the PPI website at www.bls.gov/ppi or by contacting the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

PPI Weights to be Updated to Reflect 2017 Census Shipment Values

With the release of January 2023 Producer Price Index (PPI) data on February 16, 2023, the Bureau of Labor Statistics will update PPI value weights to more accurately reflect recent production and marketing patterns. The updated weights will be constructed using 2017 value of shipments data from the Census of Manufactures, the Census of Mining, the Census of Services, and the Census of Agriculture. These data were collected in accordance with the North American Product Classification System (NAPCS). From January 2018 through December 2022, PPI weights have been based on 2012 North American Industry Classification System (NAICS) shipment values.

All PPIs will be affected by this weight update, including all industry net output indexes, as well as indexes for traditional commodity groupings. In addition, weights will be updated from the 2012 to the 2017 Economic Census for all Final Demand-Intermediate Demand (FD-ID) indexes, special commodity-grouping indexes, and inputs to industry indexes. This weight revision will not result in changes to the reference base for indexes, the dates when PPIs are set to 100.

It is important to note that the basic structures of the PPI commodity and FD-ID classification systems will not change as a result of the weight revision. However, PPIs classified according to the NAICS will be updated to reflect 2022 NAICS definitions established by the U.S. Census Bureau. The weight update also will result in shifting relative importance values. These shifts will impact aggregate indexes in a manner commensurate with the relative gains and losses in value weights from 2012 to 2017.

In addition, PPI sample updates normally occurring with the release of October 2022 and February 2023 data will be combined and released in conjunction with the release of January 2023 PPI data in February 2023.