September 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 was unchanged in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.2 percent in August and were unchanged in July. (See table A.) On an unadjusted basis, the index for final demand rose 1.8 percent for the 12 months ended in September.

Within final demand in September, a 0.2-percent increase in the index for final demand services offset a 0.2-percent decline in prices for final demand goods.

The index for final demand less foods, energy, and trade services inched up 0.1 percent in September after rising 0.2 percent in August. For the 12 months ended in September, prices for final demand less foods, energy, and trade services increased 3.2 percent.

Final Demand

Final demand services: The index for final demand services moved up 0.2 percent in September after rising 0.4 percent in August. Leading the broad-based increase in September, prices for final demand services less trade, transportation, and warehousing advanced 0.1 percent. The indexes for final demand trade services and for final demand transportation and warehousing services also rose, 0.2 percent and 0.3 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: A 3.0-percent increase in the index for deposit services (partial) was a major factor in the September advance in prices for final demand services. The indexes for machinery and vehicle wholesaling, furniture retailing, desktop and portable device application software publishing, apparel wholesaling, and airline passenger services also rose. Conversely, margins for professional and commercial equipment wholesaling fell 6.3 percent. The indexes for securities brokerage, dealing, investment advice, and related services and for consumer loans (partial) also moved lower. (See table 2.)

Final demand goods: The index for final demand goods decreased 0.2 percent in September following no change in August. The decline can be traced to a 2.7-percent drop in prices for final demand energy. In contrast, the indexes for final demand foods and for final demand goods less foods and energy increased 1.0 percent and 0.2 percent, respectively.

Product detail: Leading the September decline in prices for final demand goods, the index for gasoline decreased 5.6 percent. Prices for diesel fuel, jet fuel, chicken eggs, home heating oil, and plastic resins and materials also fell. Conversely, the index for processed poultry jumped 8.8 percent. Prices for electric power and for motor vehicles also moved higher.

Intermediate Demand by Commodity Type

Within intermediate demand in September, prices for processed goods declined 0.8 percent, the index for unprocessed goods fell 3.2 percent, and prices for services moved up 0.2 percent. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand moved down 0.8 percent in September, the largest decline since falling 1.4 percent in May. Most of the September decrease is attributable to prices for processed energy goods, which dropped 4.7 percent. The index for processed materials less foods and energy edged down 0.1 percent. In contrast, prices for processed foods and feeds rose 0.9 percent. For the 12 months ended in September, the index for processed goods for intermediate demand decreased 2.7 percent, the largest 12-month decline since falling 3.7 percent in January.

Product detail: Over 80 percent of the September decrease in prices for processed goods for intermediate demand can be attributed to the index for diesel fuel, which dropped 17.6 percent. Prices for gasoline, basic organic chemicals, plastic resins and materials, jet fuel, and asphalt also moved lower. Conversely, the index for processed poultry advanced 8.8 percent. Prices for softwood lumber and for commercial electric power also increased.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand moved down 3.2 percent in September, the largest decline since falling 4.1 percent in December 2023. The September decrease is attributable to prices for unprocessed energy materials, which dropped 12.6 percent. In contrast, the indexes for unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy increased 2.7 percent and 1.9 percent, respectively. For the 12 months ended in September, prices for unprocessed goods for intermediate demand fell 9.5 percent, the largest 12-month decline since decreasing 13.5 percent in January.

Product detail: Most of the September decrease in prices for unprocessed goods for intermediate demand can be traced to the index for crude petroleum, which fell 16.7 percent. Prices for ungraded chicken eggs; slaughter steers and heifers; coal; fresh vegetables, except potatoes; and recyclable paper also moved down. Conversely, the index for slaughter poultry advanced 5.8 percent. Prices for nonferrous metal ores and for natural gas also increased.

Services for intermediate demand: The index for services for intermediate demand increased 0.2 percent in September after edging down 0.1 percent in August. Over half of the broad-based rise can be attributed to prices for services less trade, transportation, and warehousing for intermediate demand, which advanced 0.2 percent. The indexes for transportation and warehousing services for intermediate demand and for trade services for intermediate demand also moved up, 0.3 percent and 0.2 percent, respectively. For the 12 months ended in September, prices for services for intermediate demand advanced 3.5 percent.

Product detail: Leading the September increase in the index for services for intermediate demand, prices for staffing services jumped 2.7 percent. The indexes for deposit services (partial), investment banking, food and alcohol wholesaling, radio advertising time sales, and services related to air transportation also moved higher. In contrast, prices for securities brokerage, dealing, investment advice, and related services fell 2.3 percent. The indexes for machinery and equipment parts and supplies wholesaling and for long-distance motor carrying also declined.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand edged up 0.1 percent in September after decreasing 0.1 percent in August. In September, the indexes for both total goods inputs and for total services inputs to stage 4 intermediate demand advanced 0.1 percent. (See table D.) Rising prices for processed poultry; staffing services; investment banking; grains; and hay, hayseeds, and oilseeds outweighed declines in the indexes for securities brokerage, dealing, investment advice, and related services; diesel fuel; gross rents for retail properties; and gasoline. For the 12 months ended in September, prices for stage 4 intermediate demand increased 1.8 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand decreased 0.2 percent in September following a 0.4-percent decline in August. In September, prices for total goods inputs to stage 3 intermediate demand fell 0.9 percent. Conversely, the index for total services inputs rose 0.4 percent. Lower prices for diesel fuel, basic organic chemicals, jet fuel, plastic resins and materials, asphalt, and television advertising time sales outweighed advances in the indexes for staffing services, slaughter poultry, and slaughter hogs. For the 12 months ended in September, prices for stage 3 intermediate demand were unchanged.

Stage 2 intermediate demand: The index for stage 2 intermediate demand decreased 1.6 percent in September, the largest decline since falling 2.5 percent in March 2023. In September, prices for total goods inputs to stage 2 intermediate demand dropped 4.6 percent. In contrast, the index for total services inputs moved up 0.5 percent. Decreases in prices for crude petroleum; business loans (partial); coal; basic organic chemicals; diesel fuel; and securities brokerage, dealing, investment advice, and related services outweighed advances in the indexes for staffing services, deposit services (partial), and natural gas. For the 12 months ended in September, prices for stage 2 intermediate demand fell 2.4 percent, the largest 12-month decline since moving down 2.9 percent in January.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand declined 0.5 percent in September, the first decrease since falling 0.7 percent in May. In September, the index for total goods inputs to stage 1 intermediate demand moved down 0.9 percent, while prices for total services inputs were unchanged. Declines in the indexes for diesel fuel; securities brokerage, dealing, investment advice, and related services; gross rents for retail properties; gasoline; basic organic chemicals; and air conditioning and refrigeration equipment outweighed higher prices for grains, investment banking, and traveler accommodation services. For the 12 months ended in September, the index for stage 1 intermediate demand fell 0.3 percent, the first 12-month decrease since moving down 0.5 percent in January.