January 2024 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 0.3 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.1 percent in December 2023 and advanced 0.1 percent in November. (See table A.) On an unadjusted basis, the index for final demand rose 0.9 percent for the 12 months ended January 2024.

In January, the advance in the index for final demand can be traced to a 0.6-percent rise in prices for final demand services. In contrast, the index for final demand goods decreased 0.2 percent.

The index for final demand less foods, energy, and trade services rose 0.6 percent in January 2024, the largest advance since moving up 0.6 percent in January 2023. For the 12 months ended January 2024, prices for final demand less foods, energy, and trade services increased 2.6 percent.

Final Demand

Final demand services: The index for final demand services moved up 0.6 percent in January, the largest increase since rising 0.8 percent in July 2023. In January, most of the advance is attributable to prices for final demand services less trade, transportation, and warehousing, which climbed 0.8 percent. The index for final demand trade services moved up 0.2 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Conversely, prices for final demand transportation and warehousing services fell 0.4 percent.

Product detail: A 2.2-percent increase in the index for hospital outpatient care was a major factor in the January rise in prices for final demand services. The indexes for chemicals and allied products wholesaling, machinery and equipment wholesaling, portfolio management, traveler accommodation services, and legal services also moved higher. In contrast, prices for long-distance motor carrying decreased 1.0 percent. The indexes for computer hardware, software, and supplies retailing and for engineering services also moved lower. (See table 2.)

Final demand goods: The index for final demand goods moved down 0.2 percent in January, the fourth consecutive decline. Most of the January decrease is attributable to a 1.7-percent drop in prices for final demand energy. The index for final demand foods fell 0.3 percent. Conversely, prices for final demand goods less foods and energy increased 0.3 percent.

Product detail: Leading the January decline in the index for final demand goods, prices for gasoline fell 3.6 percent. The indexes for electric power; hay, hayseeds, and oilseeds; beef and veal; ethanol; and iron and steel scrap also moved lower. In contrast, prices for communication and related equipment increased 2.4 percent. The indexes for soft drinks and for liquified petroleum gas also moved higher.

Intermediate Demand by Commodity Type

Within intermediate demand in January, the index for processed goods fell 0.2 percent, prices for unprocessed goods edged up 0.1 percent, and the index for services rose 0.5 percent. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand fell 0.2 percent in January, the fourth consecutive decrease. Leading the January decline, prices for processed energy goods dropped 1.7 percent. The index for processed foods and feeds moved down 1.5 percent. Conversely, prices for processed materials less foods and energy advanced 0.3 percent. For the 12 months ended in January, the index for processed goods for intermediate demand decreased 3.8 percent.

Product detail: Leading the decline in prices for processed goods for intermediate demand, the index for electric power fell 2.1 percent. Prices for basic organic chemicals, gasoline, meats, prepared animal feeds, and lubricating oil base stocks also moved lower. In contrast, the index for inedible fats and oils jumped 23.3 percent. Prices for utility natural gas and for cold rolled steel sheet and strip also increased.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand inched up 0.1 percent in January following three straight declines. The increase is attributable to prices for unprocessed energy materials, which rose 3.8 percent. Conversely, the index for unprocessed foodstuffs and feedstuffs fell 2.2 percent, and prices for unprocessed nonfood materials less energy moved down 1.7 percent. For the 12 months ended in January, the index for unprocessed goods for intermediate demand declined 15.0 percent.

Product detail: Leading the rise in prices for unprocessed goods for intermediate demand in January, the index for crude petroleum advanced 6.1 percent. Prices for slaughter steers and heifers; construction sand, gravel, and crushed stone; slaughter turkeys; and unprocessed finfish also increased. In contrast, the index for corn declined 6.5 percent. Prices for hay, hayseeds, and oilseeds; iron and steel scrap; and natural gas also moved lower.

Services for intermediate demand: In January, the index for services for intermediate demand moved up 0.5 percent, the third consecutive advance. Leading the January increase, prices for services less trade, transportation, and warehousing for intermediate demand rose 0.7 percent. The index for trade services for intermediate demand edged up 0.1 percent. Conversely, prices for transportation and warehousing for intermediate demand declined 0.1 percent. For the 12 months ended in January, the index for services for intermediate demand advanced 3.1 percent.

Product detail: A 1.6-percent increase in the index for nonresidential real estate rents was a major factor in the January advance in prices for services for intermediate demand. The indexes for chemicals and allied products wholesaling; portfolio management; legal services; residential property management fees; and metals, minerals, and ores wholesaling also moved higher. In contrast, prices for long-distance motor carrying declined 1.0 percent. The indexes for food and alcohol wholesaling and for radio advertising time sales also decreased.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand moved up 0.4 percent in January, the largest increase since a 0.4-percent rise in August 2023. In January, prices for total services inputs to stage 4 intermediate demand advanced 0.8 percent. Conversely, the index for total goods inputs declined 0.2 percent. (See table D.) Increases in the indexes for chemicals and allied products wholesaling, portfolio management, nonresidential real estate rents, legal services, residential property management fees, and inedible fats and oils outweighed decreasing prices for electric power, engineering services, and meats. For the 12 months ended in January, the index for stage 4 intermediate demand rose 1.5 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand were unchanged in January following three consecutive declines. In January, a 0.2-percent advance in the index for total services inputs to stage 3 intermediate demand offset a 0.3-percent decrease in prices for total goods inputs. Increases in the indexes for chemicals and allied products wholesaling, legal services, nonresidential real estate rents, slaughter steers and heifers, and inedible fats and oils offset falling prices for corn, raw milk, slaughter chickens, cable network advertising time sales, and primary basic organic chemicals. For the 12 months ended in January, the index for stage 3 intermediate demand moved down 2.6 percent.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand increased 0.5 percent in January following a 1.4-percent decline in December. The index for total goods inputs to stage 2 intermediate demand advanced 0.6 percent, and prices for total services inputs moved up 0.4 percent. Increases in the indexes for crude petroleum, legal services, chemicals and allied products wholesaling, loan services (partial), liquefied petroleum gas, and traveler accommodation services outweighed declines in the indexes for basic organic chemicals, oilseeds, and fuels and lubricants retailing. For the 12 months ended in January, prices for stage 2 intermediate demand decreased 3.8 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand rose 0.2 percent in January following three consecutive declines. In January, the index for total services inputs to stage 1 intermediate demand increased 0.7 percent. In contrast, prices for total goods inputs fell 0.3 percent. Advances in the indexes for chemicals and allied products wholesaling; inedible fats and oils; traveler accommodation services; portfolio management; metals, minerals, and ores wholesaling; and utility natural gas outweighed decreasing prices for basic organic chemicals, electric power, and engineering services. For the 12 months ended in January, the index for stage 1 intermediate demand moved down 0.7 percent.

Recalculation of Seasonal Adjustment Factors

Effective with this release, seasonal adjustment factors have been recalculated to reflect price- movement patterns during 2023 for the Final Demand-Intermediate Demand (FD-ID) system and commodity-grouping indexes. This routine annual recalculation may affect previously published seasonally adjusted indexes and percent changes for January 2019 through December 2023.

Revised seasonally adjusted data for this period, as well as seasonal adjustment factors for directly adjusted commodity indexes to be used through December 2024, were released February 14, 2024. To obtain this information, contact the Producer Price Index Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705, or visit the Producer Price Index homepage at www.bls.gov/ppi.

Tables E and F below provide monthly seasonally adjusted percent changes for major FD-ID system indexes in 2023, based on former and recalculated seasonal factors. These percent changes include final price data through August 2023 and may differ from values shown in tables A through C of this release, which include final price data through September 2023 and revised interim data for October through December.