October 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 0.2 percent in October, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.1 percent in September and 0.2 percent in August. (See table A.) On an unadjusted basis, the index for final demand moved up 2.4 percent for the 12 months ended in October.

In October, most of the rise in final demand prices can be traced to a 0.3-percent advance in the index for final demand services. Prices for final demand goods inched up 0.1 percent.

The index for final demand less foods, energy, and trade services increased 0.3 percent in October after moving up 0.1 percent in September. For the 12 months ended in October, prices for final demand less foods, energy, and trade services rose 3.5 percent.

Final Demand

Final demand services: The index for final demand services increased 0.3 percent in October after rising 0.2 percent in September. Over three-fourths of the broad-based advance in October is attributable to prices for final demand services less trade, transportation, and warehousing, which moved up 0.3 percent. The indexes for final demand transportation and warehousing services and for final demand trade services also increased, 0.5 percent and 0.1 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Over one-third of the rise in the index for final demand services can be traced to prices for portfolio management, which advanced 3.6 percent. The indexes for machinery and vehicle wholesaling; airline passenger services; computer hardware, software, and supplies retailing; outpatient care (partial); and cable and satellite subscriber services also moved higher. In contrast, margins for apparel, footwear, and accessories retailing fell 3.7 percent. Prices for securities brokerage, dealing, investment advice, and related services and for truck transportation of freight also declined. (See table 2.)

Final demand goods: The index for final demand goods inched up 0.1 percent in October following two consecutive decreases. The advance can be traced to a 0.3-percent rise in prices for final demand goods less foods and energy. Conversely, the indexes for final demand energy and for final demand foods declined 0.3 percent and 0.2 percent, respectively.

Product detail: An 8.4-percent increase in the index for carbon steel scrap was a major factor in the advance in prices for final demand goods. The indexes for meats, diesel fuel, fresh and dry vegetables, and oilseeds also moved higher. In contrast, prices for liquefied petroleum gas fell 18.1 percent. The indexes for chicken eggs, processed poultry, and ethanol also decreased.

Intermediate Demand by Commodity Type

Within intermediate demand in October, prices for processed goods rose 0.5 percent, the index for unprocessed goods jumped 4.1 percent, and prices for services inched up 0.1 percent. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand rose 0.5 percent in October following two consecutive declines. Sixty percent of the increase can be attributed to a 0.4-percent advance in prices for processed materials less foods and energy. The index for processed energy goods moved up 1.2 percent. Conversely, prices for processed foods and feeds edged down 0.1 percent. For the 12 months ended in October, the index for processed goods for intermediate demand fell 1.2 percent.

Product detail: A major factor in the October increase in prices for processed goods for intermediate demand was the index for primary basic organic chemicals, which advanced 5.3 percent. Prices for diesel fuel, commercial electric power, plastic resins and materials, nonferrous metals, and meats also moved higher. In contrast, the index for processed poultry declined 6.6 percent. Prices for liquefied petroleum gas and for ethanol also fell.

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate demand rose 4.1 percent in October, the largest advance since moving up 4.6 percent in August 2022. Over 80 percent of the broad-based increase in October can be attributed to a 9.9-percent jump in the index for unprocessed energy materials. Prices for unprocessed nonfood materials less energy and for unprocessed foodstuffs and feedstuffs also rose, 2.1 percent and 0.4 percent, respectively. For the 12 months ended in October, the index for unprocessed goods for intermediate demand declined 2.9 percent.

Product detail: Over 40 percent of the October increase in prices for unprocessed goods for intermediate demand can be traced to a 7.3-percent advance in the index for crude petroleum. Prices for natural gas, carbon steel scrap, slaughter cattle, slaughter poultry, and nonferrous metal ores also rose. Conversely, the index for hay and hayseeds dropped 22.8 percent. Prices for ungraded chicken eggs and for recyclable paper also fell.

Services for intermediate demand: Prices for services for intermediate demand moved up 0.1 percent in October, the same as in September. Leading the October advance, the index for services less trade, transportation, and warehousing for intermediate demand rose 0.1 percent. Prices for transportation and warehousing services for intermediate demand increased 0.4 percent. In contrast, the index for trade services for intermediate demand fell 0.4 percent. For the 12 months ended in October, prices for services for intermediate demand advanced 3.5 percent.

Product detail: Within the index for services for intermediate demand in October, prices for legal services rose 1.4 percent. The indexes for portfolio management, television advertising time sales, airline passenger services, and paper and plastics products wholesaling also moved higher. Conversely, margins for chemicals and allied products wholesaling fell 3.2 percent. The indexes for securities brokerage, dealing, investment advice, and related services; loan services (partial); and truck transportation of freight also decreased.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand increased 0.2 percent in October after no change in September. In October, the index for total goods inputs to stage 4 intermediate demand advanced 0.3 percent, and prices for total services inputs moved up 0.1 percent. (See table D.) Increases in prices for diesel fuel, portfolio management, gross rents for office buildings, gross rents for retail properties, legal services, and commercial electric power outweighed decreases in the indexes for securities brokerage, dealing, investment advice, and related services; loan services (partial); and processed poultry. For the 12 months ended in October, prices for stage 4 intermediate demand rose 2.3 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand rose 0.5 percent in October following two consecutive declines. In October, the index for total goods inputs to stage 3 intermediate demand advanced 1.0 percent, and prices for total services inputs moved up 0.2 percent. Increases in the indexes for diesel fuel, slaughter poultry, plastic resins and materials, slaughter cattle, primary basic organic chemicals, and television advertising time sales outweighed falling prices for ungraded chicken eggs, loan services (partial), and hay and hayseeds. For the 12 months ended in October, the index for stage 3 intermediate demand moved up 1.2 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand rose 1.5 percent in October, the largest increase since moving up 1.9 percent in July 2023. In October, prices for total goods inputs to stage 2 intermediate demand advanced 3.8 percent. In contrast, the index for total services inputs edged down 0.1 percent. Increasing prices for crude petroleum, natural gas, legal services, carbon steel scrap, broadcast and network television advertising time sales, and primary basic organic chemicals outweighed decreases in the indexes for loan services (partial), liquified petroleum gas, and fuels and lubricants retailing. For the 12 months ended in October, prices for stage 2 intermediate demand fell 0.4 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand advanced 0.3 percent in October after declining 0.5 percent in September. In October, prices for total goods inputs to stage 1 intermediate demand rose 0.6 percent, while the index for total services inputs was unchanged. Increases in prices for diesel fuel, primary basic organic chemicals, airline passenger services, portfolio management, carbon steel scrap, and gross rents for office buildings outweighed decreases in the indexes for securities brokerage, dealing, investment advice, and related services; chemicals and allied products wholesaling; and residual fuels. For the 12 months ended in October, prices for stage 1 intermediate demand advanced 0.4 percent.

Quality Changes for 2025 Model Vehicles

In accordance with usual practice, most new-model-year passenger cars and light motor trucks were introduced into the Producer Price Index (PPI) with the release of data for October 2024.

Passenger Cars

The value of quality changes for a sample of 2025-model-year domestically produced passenger cars included in the PPI for October averaged $76.36, according to estimates by the U.S. Bureau of Labor Statistics (BLS). This change represents 8.9 percent of the average $857.71 increase in manufacturer invoice prices for 2025 models as compared with models from the prior year.

The retail equivalent value of these quality changes averaged $81.74, representing 9.3 percent of the average $880.18 over-the-year increase in manufacturer suggested list prices.

Light Trucks

The value of quality changes for a sample of 2025-model-year domestically produced light trucks included in the PPI for October averaged $96.79. This change represents 11.8 percent of the average $817.22 increase in manufacturer invoice prices for 2025 models as compared with models from the prior year.

The retail equivalent value of these quality changes averaged $102.41, representing 12.1 percent of the average $845.72 over-the-year increase in manufacturer suggested list prices.

The $102.41 estimated retail value of quality change breaks down as follows:

* $6.95 for improvements to infotainment systems. * $41.98 for improvements to safety. * $53.48 for other changes, such as improvements to powertrains and changes in levels of standard or optional equipment.

For technical information regarding quality changes for 2025-model-year motor vehicles, contact Jonathan McQuade at McQuade.Jonathan@bls.gov or (202) 691-7747. For general PPI information, contact the PPI Section of Index Analysis and Public Information, at ppi-info@bls.gov or (202) 691-7705.

Estimates of the value of quality change are based on a review by the BLS of data supplied by producers for similarly equipped 2024 and 2025 domestic models priced for the PPI. Most of the estimates of quality changes in this release are derived from information supplied for the PPI for October. These data also form the basis of the new vehicle quality adjustment for the Consumer Price Index (CPI). However, it should be noted that, effective with the release of data for January 1999, changes made solely for the purpose of meeting air pollution standards are not considered quality improvements for CPI calculation purposes.

Resampling of Industries - October 2024

Effective with the release of data for October 2024, the Producer Price Index (PPI) includes data for 12 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 specific index additions, deletions, and recodes effective October 2024, see the current issue of the PPI Detailed Report online at www.bls.gov/ppi/detailed-report/ppi- detailed-report-october-2024.pdf, or contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

NAICS Code Industry 311422 Specialty canning 311821 Cookie and cracker manufacturing 311824 Dry pasta, dough, and flour mixes manufacturing from purchased flour 321991 Manufactured home, mobile home, manufacturing 322220 Paper bag and coated and treated paper manufacturing 325998 Other miscellaneous chemical product manufacturing 327999 Miscellaneous nonmetallic mineral products manufacturing 331512 Steel investment foundries 335931 Current-carrying wiring device manufacturing 445200 Specialty food retailers 523150 Investment banking and securities intermediation 523940 Portfolio Management and investment advice

Recalculated Relative Importance Figures and Seasonal Adjustment Factors to be Available on February 13, 2025

Relative Importance Figure Tables for December 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

Seasonal Factor Update: * Direct seasonal factors for PPI commodity indexes for 2025 * Recalculated seasonal factors for the last 5 years (2020-2024) for PPI commodity indexes * Recalculated seasonal factors for the last 5 years (2020-2024) for PPI Final Demand- Intermediate Demand indexes

Recalculated seasonal index data for 2020-2024 for the Final Demand-Intermediate Demand and commodity indexes also will be posted to the PPI database on the BLS website on February 13, 2025, at 8:30 AM eastern time.

For additional information, contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.