January 2025 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 0.4 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.5 percent in December 2024 and 0.2 percent in November. (See table A.) On an unadjusted basis, the index for final demand moved up 3.5 percent for the 12 months ended January 2025.

Leading the broad-based January advance in the index for final demand, prices for final demand services rose 0.3 percent. The index for final demand goods moved up 0.6 percent.

The index for final demand less foods, energy, and trade services rose 0.3 percent in January after moving up 0.4 percent in December. For the 12 months ended in January, prices for final demand less foods, energy, and trade services advanced 3.4 percent.

Final Demand

Final demand services: The index for final demand services moved up 0.3 percent in January, the sixth consecutive increase. Three-fourths of the broad-based advance in January is attributable to prices for final demand services less trade, transportation, and warehousing, which rose 0.4 percent. The indexes for final demand transportation and warehousing services and for final demand trade services also increased, 0.6 percent and 0.1 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Over one-third of the January rise in the index for final demand services can be traced to prices for traveler accommodation services, which advanced 5.7 percent. The indexes for automobile retailing (partial); truck transportation of freight; food and alcohol retailing; apparel, jewelry, footwear, and accessories retailing; and bundled wired telecommunications access services also moved higher. In contrast, margins for fuels and lubricants retailing fell 9.8 percent. Prices for securities brokerage, dealing, investment advice, and related services and for physician care also declined. (See table 2.)

Final demand goods: The index for final demand goods moved up 0.6 percent in January, the fourth consecutive rise. Over half of the broad-based January advance can be traced to a 1.7-percent increase in prices for final demand energy. The indexes for final demand foods and for final demand goods less foods and energy also rose, 1.1 percent and 0.1 percent, respectively.

Product detail: In January, a 10.4-percent increase in the index for diesel fuel was a major factor in the advance in prices for final demand goods. The indexes for chicken eggs, beef and veal, gas fuels, jet fuel, and communication and related equipment also moved higher. Conversely, prices for fresh and dry vegetables fell 22.3 percent. The indexes for pharmaceutical preparations and for residential electric power also decreased.

Intermediate Demand by Commodity Type

Within intermediate demand in January, the index for processed goods increased 1.0 percent, prices for unprocessed goods jumped 5.5 percent, and the index for services fell 0.2 percent. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand moved up 1.0 percent in January, the largest increase since a 1.1-percent rise in February 2024. Nearly two-thirds of the broad-based January advance can be attributed to a 3.5-percent jump in the index for processed energy goods. Prices for processed materials less foods and energy and for processed foods and feeds also moved higher, 0.4 percent and 0.8 percent, respectively. For the 12 months ended in January, the index for processed goods for intermediate demand advanced 1.0 percent, the largest 12-month increase since rising 2.1 percent in February 2023.

Product detail: More than one-third of the January advance in the index for processed goods for intermediate demand can be traced to a 10.4-percent jump in prices for diesel fuel. The indexes for hot rolled steel bars, plates, and structural shapes; primary basic organic chemicals; utility natural gas; liquefied petroleum gas; and beef and veal also increased. In contrast, prices for industrial electric power fell 1.2 percent. The indexes for softwood lumber (not edge worked) and for confectionery materials also declined.

Unprocessed goods for intermediate demand: Prices for unprocessed goods for intermediate demand moved up 5.5 percent in January, the largest advance since rising 5.6 percent in May 2022. Leading the broad-based January increase, the index for unprocessed energy materials jumped 13.0 percent. Prices for unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy also moved higher, 0.9 percent and 1.4 percent, respectively. For the 12 months ended in January, the index for unprocessed goods for intermediate demand rose 8.7 percent, the largest 12-month increase since a 10.7- percent jump in December 2022.

Product detail: Nearly two-thirds of the January advance in the index for unprocessed goods for intermediate demand can be attributed to a 14.8-percent jump in prices for crude petroleum. The indexes for natural gas, livestock, corn, nonferrous metal ores, and ungraded chicken eggs also rose. Conversely, prices for fresh fruits and melons dropped 13.7 percent. The indexes for carbon steel scrap and for coal also decreased.

Services for intermediate demand: In January, prices for services for intermediate demand fell 0.2 percent after rising 0.5 percent in December. A major factor in the decrease was the index for services less trade, transportation, and warehousing for intermediate demand, which declined 0.3 percent. Margins for trade services for intermediate demand moved down 0.2 percent. In contrast, prices for transportation and warehousing services for intermediate demand advanced 0.4 percent. For the 12 months ended in January, the index for services for intermediate demand increased 2.1 percent.

Product detail: Leading the January decline in the index for services for intermediate demand, prices for business loans (partial) dropped 7.7 percent. The indexes for securities brokerage, dealing, investment advice, and related services; radio advertising time sales; fuels and lubricants retailing; broadcast and network television advertising time sales; and ground courier and messenger services also fell. Conversely, prices for truck transportation of freight increased 1.3 percent. The indexes for machinery and equipment parts and supplies wholesaling and for investment banking also moved up.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand rose 0.2 percent in January, the fourth consecutive advance. In January, the index for total goods inputs to stage 4 intermediate demand moved up 0.4 percent, while prices for total services inputs were unchanged. (See table D.) Increases in the indexes for diesel fuel; machinery and equipment parts and supplies wholesaling; investment banking; warehousing, storage, and related services; beef and veal; and paving mixtures and blocks outweighed declining prices for business loans (partial); securities brokerage, dealing, investment advice, and related services; and fresh fruits and melons. For the 12 months ended in January, the index for stage 4 intermediate demand advanced 2.1 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand increased 0.6 percent in January, the largest rise since moving up 0.7 percent in July 2024. In January, the index for total goods inputs to stage 3 intermediate demand advanced 1.5 percent. In contrast, prices for total services inputs edged down 0.1 percent. Increases in the indexes for diesel fuel; livestock; jet fuel; cable network advertising time sales; corn; and warehousing, storage, and related services outweighed lower prices for business loans (partial), slaughter chickens, and raw milk. For the 12 months ended in January, the index for stage 3 intermediate demand moved up 2.0 percent, the largest 12-month advance since a 2.2-percent rise in July 2024.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand advanced 1.9 percent in January, the largest rise since moving up 1.9 percent in July 2023. In January, the index for total goods inputs to stage 2 intermediate demand jumped 5.7 percent. Conversely, prices for total services inputs declined 0.8 percent. Higher prices for crude petroleum, gas fuels, oilseeds, traveler accommodation services, operation of port waterfront terminals, and primary basic organic chemicals outweighed decreases in the indexes for business loans (partial), fuels and lubricants retailing, and carbon steel scrap. For the 12 months ended in January, prices for stage 2 intermediate demand increased 3.2 percent, the largest 12-month advance since a 3.7-percent rise in June 2024.

Stage 1 intermediate demand: The index for stage 1 intermediate demand advanced 0.7 percent in January, the largest rise since moving up 1.3 percent in August 2023. In January, prices for total goods inputs to stage 1 intermediate demand increased 1.2 percent, and the index for total services inputs climbed 0.3 percent. Higher prices for diesel fuel; traveler accommodation services; data processing and related services; investment banking; paving mixtures and blocks; and hot rolled steel bars, plates, and structural shapes outweighed declines in the indexes for securities brokerage, dealing, investment advice, and related services; fluid power hose and tube fittings; and hardware, building materials, and supplies retailing. For the 12 months ended in January, prices for stage 1 intermediate demand advanced 1.2 percent, the largest 12-month increase since moving up 1.7 percent in July 2024.

Recalculated Relative Importance Figures and Seasonal Adjustment Factors Available

Each year with the release of data for January, relative importance figures and seasonal adjustment factors are recalculated to reflect price movements from the just-completed calendar year. The following information is available on the PPI website at www.bls.gov/ppi/tables/.

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 have also been posted to the PPI database on the BLS website.

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

PPI Recalculates Seasonal Adjustment Factors

Effective with this release, Producer Price Index (PPI) seasonal adjustment factors have been recalculated to reflect price-movement patterns during 2024 for the Final Demand-Intermediate Demand (FD-ID) system and commodity-grouping indexes. This routine annual recalculation impacts previously published seasonally adjusted indexes and percent changes for January 2020 through December 2024. Updated seasonal indexes and seasonal adjustment factors for January 2020 through December 2024, as well as seasonal factors for directly adjusted commodity indexes to be used through December 2025, have been posted to the BLS website at www.bls.gov/ppi/tables/ or contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691- 7705.

Tables E and F below provide seasonally adjusted percent changes for major FD-ID system indexes in 2024, based on former and recalculated seasonal factors. These percent changes are based on PPI data collected through December 2024, which include final price data through August 2024 and revised interim data for September through November. This differs from values shown in tables A through C of this release for January 2025, which include final price data through September 2024 and revised interim data for October through December.