November 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 was unchanged in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices decreased 0.4 percent in October and rose 0.4 percent in September. (See table A.) On an unadjusted basis, the index for final demand increased 0.9 percent for the 12 months ended in November.

In November, the indexes for both final demand goods and for final demand services were unchanged.

The index for final demand less foods, energy, and trade services edged up 0.1 percent in November, the sixth consecutive advance. For the 12 months ended in November, prices for final demand less foods, energy, and trade services rose 2.5 percent.

Final Demand

Final demand goods: The index for final demand goods was unchanged in November after dropping 1.4 percent in October. In November, price increases of 0.6 percent for final demand foods and 0.2 percent for final demand goods less foods and energy offset a 1.2-percent decrease in the index for final demand energy.

Product detail: Within final demand goods in November, prices for chicken eggs jumped 58.8 percent. The indexes for fresh fruits and melons, utility natural gas, electric power, and carbon steel scrap also moved higher. In contrast, prices for gasoline fell 4.1 percent. The indexes for processed poultry, industrial chemicals, jet fuel, and liquefied petroleum gas also moved lower. (See table 2.)

Final demand services: The index for final demand services remained unchanged in November, the same as in October. In November, prices for final demand services less trade, transportation, and warehousing edged up 0.1 percent. Conversely, the indexes for final demand trade services and for final demand transportation and warehousing services declined, 0.2 percent and 0.5 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Within the index for final demand services in November, prices for traveler accommodation services rose 4.0 percent. The indexes for deposit services (partial); health, beauty, and optical goods retailing; food and alcohol wholesaling; and apparel, footwear, and accessories retailing also advanced. In contrast, margins for automobile retailing (partial) declined 5.1 percent. The indexes for chemicals and allied products wholesaling, portfolio management, furniture retailing, and truck transportation of freight also fell.

Intermediate Demand by Commodity Type

Within intermediate demand in November, the index for processed goods was unchanged, prices for unprocessed goods fell 1.4 percent, and the index for services rose 0.2 percent. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand were unchanged in November after moving down 1.0 percent in October. In November, a 1.0-percent increase in the index for processed energy goods offset price decreases of 0.2 percent for processed materials less foods and energy and 0.6 percent for processed foods and feeds. For the 12 months ended in November, the index for processed goods for intermediate demand declined 4.1 percent.

Product detail: Within the index for processed goods for intermediate demand in November, prices for electric power advanced 1.5 percent. The indexes for diesel fuel, natural gas to electric utilities, thermoplastic resins and materials, and soybean cake and meal also moved higher. Conversely, prices for industrial chemicals fell 3.0 percent. The indexes for gasoline, processed poultry, jet fuel, and softwood lumber (not edge worked) also decreased.

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate demand declined 1.4 percent in November after falling 1.8 percent in October. Leading the November decrease, the index for unprocessed energy materials dropped 3.2 percent. Prices for unprocessed foodstuffs and feedstuffs moved down 1.0 percent. In contrast, the index for unprocessed nonfood materials less energy rose 0.7 percent. For the 12 months ended in November, prices for unprocessed goods for intermediate demand declined 13.1 percent.

Product detail: A major factor in the November decrease in prices for unprocessed goods for intermediate demand was the index for crude petroleum, which dropped 9.5 percent. Prices for slaughter steers and heifers, corn, slaughter barrows and gilts, slaughter chickens, and raw cotton also declined. Conversely, the index for carbon steel scrap advanced 8.0 percent. Prices for natural gas and for hay, hayseeds, and oilseeds also increased.

Services for intermediate demand: The index for services for intermediate demand increased 0.2 percent in November, the third consecutive rise. The November advance can be attributed to prices for services less trade, transportation, and warehousing for intermediate demand, which moved up 0.4 percent. In contrast, the indexes for transportation and warehousing services for intermediate demand and for trade services for intermediate demand fell, 0.2 percent and 0.1 percent, respectively. For the 12 months ended in November, prices for services for intermediate demand increased 2.9 percent.

Product detail: Over 40 percent of the November rise in the index for services for intermediate demand can be traced to a 4.5-percent increase in prices for gross rents for retail properties. The indexes for deposit services (partial), television advertising time sales, food and alcohol wholesaling, gross rents for office buildings, and machinery and equipment parts and supplies wholesaling also advanced. Conversely, prices for truck transportation of freight decreased 0.6 percent. The indexes for chemicals and allied products wholesaling and for business loans (partial) also moved lower.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand advanced 0.1 percent in November after decreasing 0.3 percent in October. In November, the index for total services inputs to stage 4 intermediate demand rose 0.2 percent, and prices for total goods inputs edged up 0.1 percent. (See table D.) Increases in the indexes for gross rents for retail properties, electric power, gross rents for office buildings, fresh fruits and melons, and food and alcohol wholesaling outweighed decreases in the indexes for chemicals and allied products wholesaling, portfolio management, and processed poultry. For the 12 months ended in November, prices for stage 4 intermediate demand advanced 1.5 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand declined 0.1 percent in November after moving down 0.5 percent in October. In November, prices for total goods inputs to stage 3 intermediate demand fell 0.6 percent. In contrast, the index for total services inputs rose 0.3 percent. Decreases in the indexes for slaughter steers and heifers, jet fuel, corn, slaughter barrows and gilts, and chemicals and allied products wholesaling outweighed advances in prices for television advertising time sales, diesel fuel, ungraded chicken eggs, and deposit services (partial). For the 12 months ended in November, prices for stage 3 intermediate demand fell 3.7 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand declined 0.5 percent in November, the largest decrease since moving down 1.0 percent in June. In November, prices for total goods inputs to stage 2 intermediate demand fell 1.4 percent. Conversely, the index for total services inputs advanced 0.3 percent. Decreases in the indexes for crude petroleum, industrial chemicals, liquified petroleum gas, business loans (partial), automotive fuels and lubricants retailing, and chemicals and allied products wholesaling outweighed increases in prices for deposit services (partial), natural gas, and oilseeds. For the 12 months ended in November, prices for stage 2 intermediate demand moved down 2.4 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand advanced 0.1 percent in November following a 0.4-percent decrease in October. In November, prices for total services inputs to stage 1 intermediate demand rose 0.2 percent, and the index for total goods inputs moved up 0.1 percent. Price increases for gross rents for retail properties, diesel fuel, traveler accommodation services, electric power, and carbon steel scrap outweighed decreases in the indexes for industrial chemicals, chemicals and allied products wholesaling, corn, and gasoline. For the 12 months ended in November, prices for stage 1 intermediate demand declined 1.5 percent.

Recalculated Seasonal Adjustment Factors and Relative Importance Figures to be Available on February 14, 2024

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, 2024 (2 workdays prior to the release of PPI data for January 2024 on February 16, 2024):

* Direct seasonal factors for PPI commodity indexes for the year 2024, * Recalculated seasonal factors for the last 5 years (2019-2023) for PPI commodity indexes, * Recalculated seasonal factors for the last 5 years (2019-2023) for PPI Final Demand- Intermediate Demand indexes, * Recalculated seasonal index data for the last 5 years (2019-2023) 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 figure tables, which include values for December 2023, will be available on February 14, 2024:

* 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.