December 2024 Producer Price Index

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The Producer Price Index for final demand advanced 0.2 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.4 percent in November and 0.2 percent in October. (See table A.) On an unadjusted basis, the index for final demand increased 3.3 percent in 2024 after moving up 1.1 percent in 2023.

The December rise in prices for final demand can be traced to a 0.6-percent advance in the index for final demand goods. Prices for final demand services were unchanged.

The index for final demand less foods, energy, and trade services edged up 0.1 percent in December, the same as in November. Prices for final demand less foods, energy, and trade services rose 3.3 percent in 2024 after advancing 2.7 percent in 2023.

Final Demand

Final demand goods: The index for final demand goods rose 0.6 percent in December, the third consecutive advance. The December increase in prices for final demand goods is attributable to a 3.5- percent jump in the index for final demand energy. In contrast, prices for final demand foods edged down 0.1 percent, while the index for final demand goods less foods and energy was unchanged.

Product detail: Leading the December increase in prices for final demand goods, the index for gasoline advanced 9.7 percent. Prices for residential electric power, meats, motor vehicles, gas fuels, and fresh fruits and melons also rose. Conversely, the index for fresh and dry vegetables declined 14.7 percent. Prices for carbon steel scrap and for residual fuels also fell. (See table 2.)

Final demand services: In December, the index for final demand services was unchanged after rising 0.3 percent in November. In December, a 2.2-percent advance in prices for final demand transportation and warehousing services offset declines in the indexes for final demand services less trade, transportation, and warehousing and for final demand trade services, which fell 0.2 percent and 0.1 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Within the index for final demand services in December, prices for transportation of passengers (partial) jumped 7.2 percent. The indexes for deposit services (partial), automotive fuels and lubricants retailing, food retailing, and chemicals and allied products wholesaling also advanced. In contrast, prices for traveler accommodation services fell 6.9 percent. The indexes for machinery and vehicle wholesaling, loan services (partial), food wholesaling, and furniture retailing also decreased.

Intermediate Demand by Commodity Type

Within intermediate demand in December, the index for processed goods increased 0.3 percent, prices for unprocessed goods jumped 3.2 percent, and the index for services rose 0.4 percent. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand advanced 0.3 percent in December following no change in November. Leading the increase, the index for processed energy goods moved up 1.6 percent. Prices for processed foods and feeds rose 0.4 percent, while the index for processed materials less foods and energy was unchanged. Prices for processed goods for intermediate demand advanced 0.2 percent in 2024 after falling 2.8 percent in 2023.

Product detail: Nearly two-thirds of the December rise in the index for processed goods for intermediate demand can be traced to a 9.7-percent increase in prices for gasoline. The indexes for electric power, utility natural gas, sugar and confectionery products, meats, and primary basic organic chemicals also advanced. Conversely, prices for diesel fuel declined 1.3 percent. The indexes for canned, cooked, smoked, or prepared poultry and for cold rolled steel sheet and strip also moved down.

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate demand moved up 3.2 percent in December, the largest advance since rising 4.6 percent in August 2022. Leading the December increase, the index for unprocessed energy materials jumped 10.0 percent. Prices for unprocessed foodstuffs and feedstuffs advanced 0.2 percent. In contrast, the index for unprocessed nonfood materials less energy fell 1.8 percent. Prices for unprocessed goods for intermediate demand rose 5.1 percent in 2024 after dropping 18.7 percent in 2023.

Product detail: Leading the December increase in the index for unprocessed goods for intermediate demand, prices for natural gas jumped 57.7 percent. The indexes for slaughter steers and heifers, hay and hayseeds, ungraded chicken eggs, corn, and copper base scrap also rose. Conversely, prices for carbon steel scrap dropped 11.7 percent. The indexes for raw milk and for slaughter chickens also fell.

Services for intermediate demand: The index for services for intermediate demand increased 0.4 percent in December, the largest rise since moving up 0.4 percent in June. Over 60 percent of the broad-based advance in December is attributable to prices for services less trade, transportation, and warehousing for intermediate demand, which climbed 0.4 percent. The indexes for transportation and warehousing services for intermediate demand and for trade services for intermediate demand increased 0.9 percent and 0.1 percent, respectively. In 2024, prices for services for intermediate demand rose 3.0 percent following a 3.7-percent advance in 2023.

Product detail: Over one-third of the December increase in the index for services for intermediate demand can be traced to a 7.0-percent jump in prices for gross rents for retail properties. The indexes for deposit services (partial); transportation of passengers (partial); investment banking; courier, messenger, and U.S. postal services; and chemicals and allied products wholesaling also moved higher. In contrast, margins for food wholesaling fell 2.0 percent. The indexes for traveler accommodation services and for broadcast and network television advertising time sales also declined.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand advanced 0.4 percent in December, the largest rise since moving up 0.5 percent in July. In December, prices for total services inputs to stage 4 intermediate demand climbed 0.5 percent, and the index for total goods inputs increased 0.4 percent. (See table D.) Advances in prices for gross rents for retail properties, gasoline, investment banking, transportation of passengers (partial), electric power, and deposit services (partial) outweighed decreases in the indexes for food wholesaling; canned, cooked, smoked, or prepared poultry; and natural cheese (except cottage cheese). In 2024, prices for stage 4 intermediate demand rose 2.5 percent after moving up 2.1 percent in 2023.

Stage 3 intermediate demand: The index for stage 3 intermediate demand increased 0.3 percent in December, the largest rise since jumping 0.7 percent in July. In December, prices for total services inputs to stage 3 intermediate demand advanced 0.4 percent, and the index for total goods inputs edged up 0.1 percent. Higher prices for courier, messenger, and U.S. postal services; slaughter steers and heifers; gasoline; gross rents for retail properties; asphalt; and ungraded chicken eggs outweighed declines in the indexes for raw milk, slaughter chickens, and food wholesaling. In 2024, prices for stage 3 intermediate demand increased 1.8 percent following a 2.3-percent decrease in 2023.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand rose 1.5 percent in December, the largest advance since increasing 1.9 percent in July 2023. In December, the index for total goods inputs to stage 2 intermediate demand jumped 3.4 percent, and prices for total services inputs moved up 0.3 percent. Advances in the indexes for gas fuels, deposit services (partial), crude petroleum, automotive fuels and lubricants retailing, transportation of passengers (partial), and legal services outweighed declines in the indexes for carbon steel scrap, food wholesaling, and traveler accommodation services. In 2024, prices for stage 2 intermediate demand rose 2.3 percent after falling 5.0 percent in 2023.

Stage 1 intermediate demand: The index for stage 1 intermediate demand increased 0.2 percent in December after inching down 0.1 percent in November. In December, prices for total services inputs to stage 1 intermediate demand rose 0.5 percent, while the index for total goods inputs was unchanged. Higher prices for gross rents for retail properties, transportation of passengers (partial), gasoline, investment banking, electric power, and utility natural gas outweighed decreases in the indexes for traveler accommodation services, carbon steel scrap, and diesel fuel. In 2024, prices for stage 1 intermediate demand advanced 0.9 percent following a 0.2-percent decline in 2023.

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.