June 2023 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 0.1 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.4 percent in May and edged up 0.1 percent in April. (See table A.) On an unadjusted basis, the index for final demand advanced 0.1 percent for the 12 months ended in June.

In June, the increase in final demand prices can be traced to a 0.2-percent rise in the index for final demand services. Prices for final demand goods were unchanged.

The index for final demand less foods, energy, and trade services moved up 0.1 percent in June after no change in May. For the 12 months ended in June, prices for final demand less foods, energy, and trade services advanced 2.6 percent.

Final Demand

Final demand services: The index for final demand services increased 0.2 percent in June, the same as in May. Leading the June advance, prices for final demand services less trade, transportation, and warehousing moved up 0.3 percent. Margins for final demand trade services rose 0.2 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, the index for final demand transportation and warehousing services decreased 0.9 percent.

Product detail: A 5.4-percent advance in the index for deposit services (partial) was a major factor in the June increase in prices for final demand services. The indexes for food and alcohol retailing, traveler accommodation services, insurance, hospital inpatient care, and airline passenger services also moved higher. Conversely, prices for truck transportation of freight declined 2.1 percent. The indexes for food and alcohol wholesaling and for residential real estate loans (partial) also fell. (See table 2.)

Final demand goods: Prices for final demand goods were unchanged in June after decreasing 1.6 percent in May. In June, a 0.7-percent rise in the index for final demand energy offset falling prices for final demand goods less foods and energy and for final demand foods, which declined 0.2 percent and 0.1 percent, respectively.

Product detail: Within the index for final demand goods in June, prices for gasoline rose 3.4 percent. The indexes for electric power; beef and veal; chicken eggs; and medical, surgical, and personal aid devices also moved higher. In contrast, prices for iron and steel scrap dropped 10.8 percent. The indexes for diesel fuel, oilseeds, industrial chemicals, and residual fuels also decreased.

Intermediate Demand by Commodity Type

Within intermediate demand in June, the index for processed goods fell 0.6 percent, prices for unprocessed goods decreased 2.1 percent, and the index for services was unchanged. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand moved down 0.6 percent in June, the fifth consecutive decline. Over half of the broad-based decrease in June can be traced to the index for processed materials less foods and energy, which fell 0.4 percent. Prices for processed energy goods and for processed foods and feeds also moved lower, declining 0.9 percent and 1.0 percent, respectively. For the 12 months ended in June, the index for processed goods for intermediate demand fell 9.4 percent, the largest 12-month decrease since dropping 12.0 percent in September 2009.

Product detail: In June, a major factor in the decline in prices for processed goods for intermediate demand was the index for industrial chemicals, which fell 3.5 percent. Prices for diesel fuel, plastic resins and materials, fats and oils, utility natural gas, and residual fuels also decreased. Conversely, the index for gasoline rose 3.4 percent. Prices for beef and veal and for cold rolled steel sheet and strip also advanced.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand moved down 2.1 percent in June after dropping 5.0 percent in May. Leading the June decline, prices for unprocessed energy materials decreased 5.0 percent. The index for unprocessed nonfood materials less energy moved down 2.4 percent. In contrast, prices for unprocessed foodstuffs and feedstuffs increased 0.9 percent. For the 12 months ended in June, the index for unprocessed goods for intermediate demand declined 32.2 percent, the largest 12-month decrease since dropping 35.0 percent in August 2009.

Product detail: Nearly three-quarters of the June decline in the index for unprocessed goods for intermediate demand is attributable to prices for crude petroleum, which fell 5.9 percent. The indexes for iron and steel scrap, raw milk, natural gas, oilseeds, and nonferrous metal ores also moved lower. Conversely, prices for slaughter steers and heifers advanced 8.3 percent. The indexes for coal and for construction sand, gravel, and crushed stone also rose.

Services for intermediate demand: The index for services for intermediate demand was unchanged in June after rising 0.3 percent in May. In June, prices for services less trade, transportation, and warehousing for intermediate demand inched up 0.1 percent. Offsetting this increase, the index for transportation and warehousing services for intermediate demand declined 0.4 percent, and margins for trade services for intermediate demand edged down 0.1 percent. For the 12 months ended in June, prices for services for intermediate demand advanced 4.4 percent.

Product detail: Within services for intermediate demand in June, prices for deposit services (partial) advanced 5.4 percent. The indexes for gross rents for retail properties, insurance, chemicals and allied products wholesaling, and arrangement of freight and cargo transportation also moved higher. In contrast, prices for truck transportation of freight fell 2.1 percent. The indexes for business loans (partial), food and alcohol wholesaling, gross rents for office buildings, and staffing services also decreased.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand was unchanged in June after moving down 0.1 percent in May. In June, prices for both total goods inputs and for total services inputs to stage 4 intermediate demand also were unchanged. (See table D.) Increases in the indexes for gross rents for retail properties, gasoline, deposit services (partial), insurance, and chemicals and allied products wholesaling offset declines in the indexes for business loans (partial), food and alcohol wholesaling, gross rents for office buildings, diesel fuel, and machinery and equipment parts and supplies wholesaling. For the 12 months ended in June, prices for stage 4 intermediate demand advanced 1.4 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand fell 0.2 percent in June, the fifth consecutive decrease. In June, prices for total goods inputs to stage 3 intermediate demand declined 0.3 percent, and the index for total services inputs inched down 0.1 percent. Lower prices for raw milk, diesel fuel, industrial chemicals, business loans (partial), slaughter poultry, and cable network advertising time sales outweighed increases in the indexes for slaughter steers and heifers, slaughter hogs, and arrangement of freight and cargo transportation. For the 12 months ended in June, prices for stage 3 intermediate demand fell 7.5 percent, the largest 12-month decrease since dropping 8.1 percent in May 2020.

Stage 2 intermediate demand: The index for stage 2 intermediate demand declined 1.4 percent in June after falling 1.2 percent in May. In June, prices for total goods inputs to stage 2 intermediate demand moved down 3.2 percent, and the index for total services inputs decreased 0.2 percent. Lower prices for crude petroleum, gas fuels, business loans (partial), industrial chemicals, oilseeds, and iron and steel scrap outweighed advances in the indexes for deposit services (partial), arrangement of freight and cargo transportation, and coal. For the 12 months ended in June, prices for stage 2 intermediate demand declined 13.4 percent, the largest 12-month decrease since dropping 13.5 percent in April 2015.

Stage 1 intermediate demand: The index for stage 1 intermediate demand moved down 0.2 percent in June, the fifth straight decline. In June, prices for total goods inputs to stage 1 intermediate demand fell 0.8 percent. Conversely, the index for total services inputs advanced 0.3 percent. Decreasing prices for diesel fuel, industrial chemicals, iron and steel scrap, residual fuels, truck transportation of freight, and fats and oils outweighed increases in the indexes for gross rents for retail properties, traveler accommodation services, and corn. For the 12 months ended in June, prices for stage 1 intermediate demand declined 4.7 percent, the largest 12-month decrease since dropping 5.8 percent in June 2020.

Resampling of Industries - June 2023

Effective with the release of data for June 2023, the Producer Price Index (PPI) includes data for 10 resampled industries classified according to the 2022 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 2023, see the current issue of the PPI Detailed Report online at www.bls.gov/ppi/detailed-report/ppi-detailed-report- june-2023.pdf, or contact the PPI Section of Index Analysis and Public Information at ppi- info@bls.gov or (202) 691-7705.

NAICS Code Industry 213118 Support activities for metal and nonmetallic minerals mining* 236221 New warehouse building construction 321215 Engineered wood member manufacturing 327310 Cement manufacturing 327410 Lime manufacturing 331318 Other aluminum rolling, drawing, and extruding 333120 Construction machinery manufacturing 333310 Commercial and service industry machinery manufacturing 337214 Office furniture, except wood, manufacturing 621512 Diagnostic imaging centers

* PPI-constructed NAICS code 213118 combines data formerly included under NAICS 213114 (Support activities for metal mining) and NAICS 213115 (Support activities for nonmetallic minerals, except fuels, mining).